Suchergebnisse

AbstractWe consider price and capacity decisions for a profit‐maximizing service provider in a single server queueing system, in which customers are boundedly rational and decide whether to join the service according to a multinomial logit model. We find two potential price‐capacity pair solutions for the first‐order condition of the profit‐maximizing problem. Profit is maximized at the solution with a larger capacity, but minimized at the smaller one. We then consider a dynamically adjusting capacity system to mimic a real‐life situation and find that the maximum can be reached only when the initial service rate is larger than a certain threshold; otherwise, the system capacity and demand shrink to zero. We also find that a higher level of customers' bounded rationality does not necessarily benefit a firm, nor does it necessarily allow service to be sustained. We extend our analysis to a setting in which customers' bounded rationality level is related to historical demand and find that such a setting makes service easier to sustain. Finally we find that bounded rationality always harms social welfare.

AbstractWe consider a rolling‐horizon (RH) replenishment modeling framework under which a buyer can update demand information and inventory status, modify order quantities committed previously, place an advanced order for a new period at the end of the RH, and move along in time seamlessly. We show that the optimal order policy for the two‐period RH problem is a dual‐threshold type for updating period(s) plus a base‐stock type for the advanced order. We provide analytical formulas and algorithms to compute the optimal thresholds and the optimal base‐stock level exactly. With our analytical results and numerical procedures, we demonstrate the significant value of RH replenishment in matching supplies to demands more closely. We also show that with RH updating (flexibility), the value of additional demand information beyond the RH diminishes quickly. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010

AbstractPromotional effort is a common strategy to induce sales and broaden the market scope by enhancing the products' utility to customers. In this article, we incorporate promotional effort into the customer choice model and study the joint promotional effort and assortment optimization problems, where the customer's choice behavior follows the widely used multinomial‐logit (MNL) model. Motivated by various marketing scenarios, we introduce two distinct models that address the allocation of promotional effort: (1) differentiated promotional effort—the retailer can arbitrarily allocate promotional resources to each offered product; (2) uniform promotional effort—the retailer can determine a promotional level, and the promotional effort is equally distributed to each offered product. In the first model, the revenue‐ordered assortment strategy is optimal, and we can efficiently determine the optimal promotional effort level. In the second model, the revenue‐ordered assortment is no longer optimal. We develop a polynomial time algorithm to solve the joint optimization problem under this model. Using the algorithmic results, we conduct comparative analyses between the assortment optimization problem under the proposed models and the classic MNL model, which does not exert any promotional effort. We show that the assortment size shrinks when the retailer makes the promotional effort in the decision, which indicates that product variety and promotional effort are strategic substitutes. Moreover, the retailer and customers can be better off in the presence of promotional efforts, irrespective of the format. Additionally, we conduct extensive numerical experiments to demonstrate our analytical results and gain more managerial insights.

AbstractWe conduct a bank efficiency comparison among three Chinese regions: Mainland China (CN), Hong Kong (HK), and Macao (MO). Specifically, we investigate the reasons for efficiency differences observed in the three regions from within‐region and cross‐region perspectives. We show that HK and MO maintain stable bank performance over time that lies within the developed‐economy range of efficiency levels. CN used to be well below this range but has been catching up so quickly that efficiency convergence in the three regions seems to be underway. We find that the determinants of bank efficiencies in the three Chinese jurisdictions are similar in some aspects but different in others. Most significant are their similarities in the effects of interest rate differentials, forex reserve accumulations, bank capital positions, interbank financing opportunities, and liquidity mismatch problems. Also important are their differences in the effects of bank size, revenue diversification, government ownership, property, and stock market development.