dc.contributor.author |
Olsen, Tava |
en |
dc.contributor.author |
Parker, RP |
en |
dc.date.accessioned |
2011-11-09T00:18:26Z |
en |
dc.date.issued |
2008-10 |
en |
dc.identifier.citation |
Management Science 54(10):1805-1821 Oct 2008 |
en |
dc.identifier.issn |
0025-1909 |
en |
dc.identifier.uri |
http://hdl.handle.net/2292/8830 |
en |
dc.description.abstract |
We investigate the situation where a customer experiencing an inventory stockout at a retailer potentially leaves the firm's market. In classical inventory theory, a unit stockout penalty cost has been used as a surrogate to mimic the economic effect of such a departure; in this study, we explicitly represent this aspect of consumer behavior, incorporating the diminishing effect of the consumers leaving the market upon the stochastic demand distribution in a time-dynamic context. The initial model considers a single firm. We allow for consumer forgiveness where customers may flow back to the committed purchasing market from a nonpurchasing "latent" market. The per-period decisions include a marketing mix to attract latent and new consumers to the committed market and the setting of inventory levels. We establish conditions under which the firm optimally operates a base-stock inventory policy. The subsequent two models consider a duopoly where the potential market for a firm is now the committed market of the other firm; each firm decides its own inventory level. In the first model, the only decisions are the stocking decisions and in the second model, a firm may also advertise to attract dissatisfied customers from its competitor's market. In both cases, we establish conditions for a base-stock equilibrium policy. We demonstrate comparative statics in all models. [ABSTRACT FROM AUTHOR] |
en |
dc.description.uri |
http://pubsonline.informs.org/doi/abs/10.1287/mnsc.1080.0889 |
en |
dc.language |
EN |
en |
dc.publisher |
INFORMS: Institute for Operations Research |
en |
dc.relation.ispartofseries |
Management Science |
en |
dc.rights |
Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from http://www.sherpa.ac.uk/romeo/issn/0025-1909/ |
en |
dc.rights.uri |
https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm |
en |
dc.subject |
INVENTORY control |
en |
dc.subject |
INVENTORIES, Retail |
en |
dc.subject |
COMPETITION |
en |
dc.subject |
MARKOV processes |
en |
dc.subject |
FRANCHISES (Retail trade) |
en |
dc.subject |
MARKETING |
en |
dc.subject |
SUPPLY chain management |
en |
dc.subject |
competition |
en |
dc.subject |
inventory |
en |
dc.subject |
marketing and operations interface |
en |
dc.subject |
Markov games |
en |
dc.title |
Inventory Management Under Market Size Dynamics |
en |
dc.type |
Journal Article |
en |
dc.identifier.doi |
10.1287/mnsc.1080.0889 |
en |
pubs.issue |
10 |
en |
pubs.begin-page |
1805 |
en |
pubs.volume |
54 |
en |
dc.rights.holder |
Copyright: INFORMS |
en |
pubs.author-url |
http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=34727438&site=ehost-live |
en |
pubs.end-page |
1821 |
en |
dc.rights.accessrights |
http://purl.org/eprint/accessRights/RestrictedAccess |
en |
pubs.subtype |
Article |
en |
pubs.elements-id |
167871 |
en |
pubs.org-id |
Business and Economics |
en |
pubs.org-id |
Faculty of Bus. & Eco Admin |
en |
pubs.org-id |
Faculty of Bus. & Eco Admin |
en |
dc.identifier.eissn |
1526-5501 |
en |
pubs.record-created-at-source-date |
2010-10-28 |
en |