Showing papers by "Kamran Moinzadeh published in 2008"
TL;DR: The results suggest that the manufacturer is likely to be better off in the dual channel than in the single channel when the retailer’s marginal cost is high and the wholesale price, consumer valuation and the demand variability are low.
490 citations
TL;DR: In this paper, a framework for obtaining the optimal ordering policy in a single location, continuous-review inventory system with arbitrary inter-demand times is proposed, where the authors show that it is optimal to order at demand arrival epochs only if the interdemand time has a constant or decreasing failure rate.
Abstract: In this paper, we devise a framework for obtaining the optimal ordering policy in a single location, continuous-review inventory system with arbitrary inter-demand times. We show that it is optimal to order at demand arrival epochs only if the inter-demand time has a constant or decreasing failure rate. When the inter-demand time has an increasing failure rate, we show that the optimal policy is to delay the order. We then extend this policy to multi-echelon distribution systems consisting of one supplier and many retailers. Both decentralized and centralized systems are considered. We derive expressions and procedures for the evaluation of the total cost and the computation of optimal delay in all the considered settings. More importantly, we study the impact of our delay policy in all the settings. The numerical results indicate that for the single-location model, the optimal delay can significantly reduce the total cost. Results from the single-location model can be applied to the decentralized multi-e...
7 citations
01 Dec 2008
TL;DR: In this paper, a model and analysis of the rental process at a subscription-based business like Netflix is presented, showing that, in some situations, it may be more profitable for the firm to give priority to heavy renters than light renters.
Abstract: The paper offers a model and analysis of the rental process at a subscription-based business like Netflix. We analyze a priority scheduling scheme, currently in use, that gives priority to light renters over heavy renters and show that, in some situations, it may be more profitable for the firm to give priority to heavy renters. The optimal initial inventory decision is found for a simplified case. Extensions are briefly discussed.