We develop a model for optimal location of retail stores on a network. The objective is to maximize the total profit of thenetwork subject to aminimumROI (orROI threshold) required at each store.Ourmodel determines the location and number of stores, allocation of demands to the stores, and total investment. We formulate a store’s profit as a jointly concave function in demand and investment, an...

The classical Economic Order Quantity (EPQ) models consider that the production rate is fixed and constant. But in many manufacturing and production processes the production rate is a function of stock on hand. For this sort of situations we develop and analyze an EPQ model with the assumption that the production rate is a function of the on-hand inventory and demand is a function of selling pr...

This paper explores the aggregate effect when caching multiple versions of the same Web object in the transcoding proxy. Explicitly, the aggregate profit from caching multiple versions of an object is not simply the sum of the profits from caching individual versions, but rather, depends on the transcoding relationships among them. Hence, to evaluate the profit from caching each version of an o...

We introduce a wholesale pricing strategy for an incumbent supplier facing with a competitive counterpart. We propose a profit function which considers both the present loss and future loss from a wholesale price and then study the optimal wholesale prices for different objectives about this profit function for the incumbent supplier. First, we achieve an optimal wholesale price for the incumbe...

This article graphically illustrates the one-to-one duality mapping among the production function, the product supply equation, the derived factor demand equation, and the indirect profit function for the classical profit maximization problem. This pedagogical framework is then used to illustrate how empirical application of conventional duality theory can lead to distorted empirical results if...

The assumption of expected profit-maximizing bidding behavior in a multi-unit, multi-period auction with step-function supply curves is used to estimate cost functions for electricity generation units and derive tests of expected profit-maximizing behavior. Applying these techniques to data from the National Electricity Market in Australia reveals statistically significant evidence of output-de...

This paper considers team incentive schemes that are robust to nonquantifiable uncertainty about the game played by the agents. A principal designs a contract for a team of agents, each taking an unobservable action that jointly determine a stochastic contractible outcome. The game is common knowledge among the agents, but the principal only knows some of the available action profiles. Realizin...

We study firm performance dynamics in retail growth using a dynamic model of expansion that allow these dynamics to operate through an unobserved serially correlated process that evolves both endogenously and stochastically. The model is estimated with data on conveniencestore chain diffusion across Japanese prefectures from 1982 to 2012, whereby an actual merger between two chains takes place ...

Emergence of green supply chain management could be attributed to the rising public awareness of environmental problems. Consumers say they increasingly prefer to purchase products that are produced with a minimum of pollution and with minimal environmental impact. Therefore, companies that successfully adopt a green policy can generate profits, reduce environmental impact, and provide positive...

The thesis posits that analytical studies relating to knowledge based industries (especially social media) as rent seeking organization must be revisited. Proponents of cognitive capitalism, especially Autonomist Marxists attribute sources of revenue in knowledge based industries to “rent seeking behavior” departing from Marx’s labor theory of value. Industrial production process requires capit...