Dynamic capacity management with substitution

Operations Research

Volumn 57, Issue 3, 2009, Pages 671-684

  Shumsky, Robert A ^a   Zhang, Fuqiang ^b  

^a DARTMOUTH COLLEGE   (United States)

^b WASHINGTON UNIVERSITY IN ST LOUIS   (United States)

Author keywords

Approximations heuristics; Inventory production: uncertainty; Multi item; Stochastic

Indexed keywords

APPROXIMATIONS/HEURISTICS; AVAILABLE CAPACITY; CAPACITY ALLOCATION; DEMAND INFORMATION; DYNAMIC CAPACITY; ECONOMIC PARAMETERS; INVENTORY/PRODUCTION: UNCERTAINTY; MULTI-ITEM; MULTI-PERIOD; MULTIPLE CLASS; MULTIPLE PRODUCTS; OPTIMAL ALLOCATION; OPTIMAL CAPACITY; OPTIMAL PROTECTION; ORDER-UP-TO POLICY; RELATIVE VALUE; STOCHASTIC; TWO-STEP ALGORITHMS;

CUSTOMER SATISFACTION; SALES;

OPTIMIZATION;

EID: 68149170475     PISSN: 0030364X     EISSN: 15265463     Source Type: Journal    
DOI: 10.1287/opre.1080.0610     Document Type: Article

References (38)

1. Alstrup, J., S. Boas, O. B. G. Madsen, R. V. V. Vidal. 1986. Booking policy for flights with two types of passengers. Eur. J. Oper. Res. 27 274-288.
2. Archibald, T. W., S. A. E. Sassen, L. C. Thomas. 1997. An optimal policy for a two depot inventory problem with stock transfer. Management Sci. 43(2) 173-183.
3. Axsäter, S. 2003. A new decision rule for lateral transshipments in inventory systems. Management Sci. 49(9) 1168-1179.
4. Bassok, Y., R. Anupindi, R. Akella. 1999. Single-period multiproduct inventory models with substitution. Oper. Res. 47(4) 632-642.
5. Bitran, G. R., S. M. Gilbert. 1996. Managing hotel reservations with uncertain arrivals. Oper. Res. 44(1) 35-49.
6. Brumelle, S. L., J. I. McGill. 1993. Airline seat allocation with multiple nested fare classes. Oper. Res. 41(1) 127-137.
7. Curry, R. E. 1990. Optimal airline seat allocation with fare classes nested by origins and destinations. Transportation Res. 24(3) 193-204.
8. de Véricourt, F., F. Karaesmen, Y. Dallery. 2001. Assessing the benefits of different stock-allocation policies for a make-to-stock production system. Manufacturing Service Oper. Management 3(2) 105-121.
9. de Véricourt, F., F. Karaesmen, Y. Dallery. 2002. Optimal stock allocation for a capacitated supply system. Management Sci. 48(11) 1486-1501.
10. Deshpande, G. V., M. A. Cohen, K. Donohue. 2003. A threshold inventory rationing policy for service-differentiated demand classes. Management Sci. 49(6) 683-703.
11. Ding, Q., P. Kouvelis, J. Milner. 2006. Dynamic pricing through discounts for optimizing multiple class demand fulfillment. Oper Res. 54(1) 169-183.
12. Eynan, A. 1999. The multi-location inventory centralization problem with first-come, first-served allocation. Eur J. Oper Res. 11 438-449.
13. Fine, C. H., R. M. Freund. 1990. Optimal investment in product-flexible manufacturing capacity. Management Sci. 36(4) 449-466.
14. Frank, K. C, R. Q. Zhang, I. Duenyas. 2003. Optimal policies for inventory systems with priority demand classes. Oper. Res. 51(6) 993-1002.
15. Ha, A. Y 1997a. Inventory rationing in a make-to-stock production system with several demand classes and lost sales. Management Sci. 43(8) 1093-1103.
16. Ha, A. Y 1997b. Stock rationing policy for a make-to-stock production system with two priority classes and backordering. Naval Res. Logist. 44 457-472.
17. Ha, A. Y 2000. Stock rationing in an M/Ek/1 make-to-stock queue. Management Sci. 46(1)77-87.
18. Hoffman, A. J. 1963. On simple linear programming problems. V. Klee, ed. Convexity: Proceedings of Symposia in Pure Mathematics, Vol. 7. American Mathematical Society, Providence, RI.
19. Jordan, W. C, S. C. Graves. 1995. Principles on the benefit of manufacturing process flexibility. Management Sci. 41(4) 577-594.
20. Kapuscinski, R., S. Tayur. 2000. Dynamic capacity reservation in a make-to-stock environment. Working paper, University of Michigan, Ann Arbor, MI.
21. Karaesmen, I., G. van Ryzin. 2004. Overbooking with substitutable inventory classes. Oper. Res. 52(1) 83-104.
22. Karmarkar, U. S. 1981. The multiperiod multilocation inventory problem. Oper. Res. 29(2) 215-228.
23. McGill, J., G. J. van Ryzin. 1999. Revenue management: Research overview and prospects. Transportation Sci. 33(2) 233-256.
24. Netessine, S., G. Dobson, R. A. Shumsky. 2002. Flexible service capacity: Optimal investment and the impact of demand correlation. Oper. Res. 50(2) 375-388.
25. Pasternack, B. A., Z. Drezner. 1991. Optimal inventory policies for substitutable commodities with stochastic demand. Naval Res. Logist. 38 221-240.
26. Porteus, E. L. 1975. On the optimality of structured policies in countable stage decision processes. Management Sci. 22(2) 148-157.
27. Robinson, L. W. 1990. Optimal and approximate policies in multiperiod, multiproduct inventory models with transshipment. Oper. Res. 38(2) 278-295.
28. Savin, S. V, M. A. Cohen, N. Gans, Z. Katalan. 2005. Capacity management in rental businesses with heterogeneous customer bases. Oper. Res. 53(2) 617-631.
29. Song, J.-S., Z. Xue. 2007. Demand management and inventory control for substitutable products. Working paper, Duke University, Durham, NC
30. Subramanian, J., S. Stidham, C. J. Lautenbacher. 1999. Airline yield management with overbooking, cancellations, and no-shows. Transportation Sci. 33(2) 147-167.
31. Talluri, K., G. van Ryzin. 2004. The Theory and Practice of Revenue Management. Kluwer Academic Publishers, Boston.
32. Tomlin, B., Y Wang. 2008. Pricing and operational recourse in co-production systems. Management Sci. 54(3) 522-537.
33. Topkis, D. M. 1968. Optimal ordering and rationing policies in a nonstationary dynamic inventory model with n demand classes. Management Sci. 15(3) 160-176.
34. Van Mieghem, J. A. 1998. Investment strategies for flexible resources. Management Sci. 44(8) 1071-1078.
35. Van Mieghem, J. A. 2003. Capacity management, investment, and hedging: Review and recent developments. Manufacturing Service Oper. Management 5(4) 269-302.
36. Van Mieghem, J. A., N. Rudi. 2002. Newsvendor networks: Inventory management and capacity investment with discretionary activities. Manufacturing Service Oper. Management 4(4) 313-335.
37. Wollmer, R. D. 1992. An airline seat management model for a single leg route when lower fare classes book first. Oper. Res. 40(1) 26-37.
38. Zhao, W, Y S. Zheng. 2001. A dynamic model for airline seat allocation with passenger diversion and no-shows. Transportation Sci. 35(1) 80-98.