Wine futures and advance selling under quality uncertainty

Manufacturing and Service Operations Management

Volumn 17, Issue 3, 2015, Pages 411-426

  Noparumpa, Tim ^a   Kazaz, Burak ^b   Webster, Scott ^c  

^a CHULALONGKORN UNIVERSITY   (Thailand)

^b SYRACUSE UNIVERSITY   (United States)

^c ARIZONA STATE UNIVERSITY   (United States)

Author keywords

Advance selling; Pricing; Quality uncertainty; Wine futures

Indexed keywords

BOTTLES; COMMERCE; COSTS; RISK ASSESSMENT; SALES; VALUE ENGINEERING;

ADVANCE SELLING; CONDITIONAL VALUE-AT-RISK; CONSUMER PREFERENCES; CONSUMER VALUATIONS; EMPIRICAL ANALYSIS; OPERATIONAL FLEXIBILITY; PRODUCTION PROCESS; QUALITY UNCERTAINTY;

WINE;

EID: 84936930812     PISSN: 15234614     EISSN: 15265498     Source Type: Journal    
DOI: 10.1287/msom.2015.0529     Document Type: Article

References (41)

1. Aydin G, Porteus EL (2008) Joint inventory and pricing decisions for an assortment. Oper. Res. 56(5):1247-1255.
2. Bansal S, Transchel S (2014) Managing supply risk for vertically differentiated co-products. Production Oper. Management 23(9):1577-1598.
3. Bassok Y, Anupindi R, Akella R (1999) Single-period multiproduct inventory models with substitution. Oper. Res. 48(4):632-642.
4. Bitran GR, Dasu S (1992) Ordering policies in an environment of stochastic yields and substitutable demands. Oper. Res. 40(5):999-1017.
5. Bitran GR, Gilbert SM (1994) Co-production processes with random yields in the semi-conductor industry. Oper. Res. 42(3):476-491.
6. Boyaci T, O¨zer Ö (2010) Information acquisition for capacity planning via pricing and advance selling: When to stop and act? Oper. Res. 58(5):1328-1349.
7. Carlton DW, Perloff JM (2010) Modern Industrial Organization (Pearson, New York).
8. Cho SH, Tang CS (2013) Advance selling in a supply chain under uncertain supply and demand. Manufacturing Service Oper. Management 15(2):305-319.
9. Corless RM, Gonnet GH, Hare DEG, Jeffrey DJ, Knuth DE (1996) On the Lambert W function. Adv. Comput. Math. 5(1):329-359.
10. Dana JD, Petruzzi NC (2001) Note: The newsvendor model with endogenous demand. Management Sci. 47(11):1488-1497.
11. Dawson E (2011) Summer in a Glass: The Coming of Age of Winemaking in the Finger Lakes (Sterling Epicure, New York).
12. Fay S, Xie JH (2010) The economics of buyer uncertainty: Advance selling vs. probabilistic selling. Marketing Sci. 29(6):1040-1056.
13. Federgruen A, Heching A (1999) Combined pricing and inventory control under uncertainty. Oper. Res. 47(3):454-475.
14. Federgruen A, Heching A (2002) Multilocation combined pricing and inventory control. Manufacturing Service Oper. Management 4(4):275-295.
15. Gale IL, Holmes TJ (1992) The efficiency of advance-purchase discounts in the presence of aggregate demand uncertainty. Internat. J. Indust. Organ. 10(3):413-437.
16. Gale IL, Holmes TJ (1993) Advance-purchase discounts and monopoly allocation of capacity. Amer. Econom. Rev. 83(1):135-146.
17. Hsu A, Bassok Y (1999) Random yield and random demand in a production system with downward substitution. Oper. Res. 47(2):277-290.
18. Jones PC, Lowe T, Traub RD, Keller G (2001) Matching supply and demand: The value of a second chance in producing hybrid seed corn. Manufacturing Service Oper. Management 3(2):122-137.
19. Kazaz B (2004) Production planning under yield and demand uncertainty. Manufacturing Service Oper. Management 6(3):209-224.
20. Kazaz B, Webster S (2011) The impact of yield dependent trading costs on pricing and production planning under supply uncertainty. Manufacturing Service Oper. Management 13(3):404-417.
21. Kocabiyikoʇlu A, Popescu I (2011) An elasticity approach to the newsvendor with price-sensitive demand. Oper. Res. 59(2):301-312.
22. Kohn M (1978) Competitive speculation. Econometrica 46(5):1061-1076.
23. Li H, Huh WT (2011) Pricing multiple products with the multinomial logit and nested logit concavity: Concavity and implications. Manufacturing Service Oper. Management 13(4):549-563.
24. McFadden D (2001) Economic choices. Amer. Econom. Rev. 91(3):351-378.
25. Nahmias S, Moinzadeh K (1997) Lots sizing with randomly graded yields. Oper. Res. 45(6):974-989.
26. Noparumpa T, Kazaz B, Webster S (2015) Production planning under supply and quality uncertainty with two customer segments and downward substitution. Working paper, Syracuse University, Syracuse, NY.
27. O¨ner S, Bilgiç T (2008) Economic lot scheduling with uncontrolled co-production. Eur. J. Oper. Res. 188(3):793-810.
28. Petruzzi N, Dada M (1999) Pricing and the newsvendor problem: A review with extension. Oper. Res. 47(2):183-194.
29. Shugan SM, Xie JH (2000) Advance pricing of services and other implications of separating purchase and consumption. J. Services Res. 2(3):227-239.
30. Shugan SM, Xie JH (2005) Advance selling as a competitive marketing tool. J. Res. Marketing 22(3):351-373.
31. Su X (2007) Intertemporal pricing with strategic customer behavior. Management Sci. 53(5):726-741.
32. Su X (2010) Optimal pricing with speculators and strategic customers. Management Sci. 56(1):25-40.
33. Su X, Zhang F (2008) Strategic customer behavior, commitment, and supply chain performance. Management Sci. 54(10):1759-1773.
34. Su X, Zhang F (2009) On the value of commitment and availability guarantees when selling to strategic consumers. Management Sci. 55(5):713-726.
35. Talluri K, van Ryzin G (2004) The Theory and Practice of Revenue Management (Kluwer Academic Publishers, Boston).
36. Tang CS, Lim WS (2013) Advance selling in the presence of speculators and forward looking consumers. Production Oper. Management 22(3):571-587.
37. Tomlin B, Wang Y (2008) Pricing and operational recourse in coproduction systems. Management Sci. 54(3):522-537.
38. Van Mieghem JA, Dada M (1999) Price versus production post-ponement: Capacity and competition. Management Sci. 45(12):1631-1649.
39. Varian H (2009) Intermediate Economics (W.W. Norton Company, New York).
40. Vulcano G, van Ryzin G, Chaar W (2010) Choice-based revenue management: An empirical study of estimation and optimization. Manufacturing Service Oper. Management 12(3):371-392.
41. Xie J, Shugan SM (2001) Electronic tickets, smart cards, and online payments: When and how to advance sell. Marketing Sci. 20(3):219-243.