A Stochastic Inventory Model with Trade Credit
Manufacturing & Service Operations Management
Resource and Revenue Management in Nonprofit Operations
Operations Research
Operational causes of bankruptcy propagation in supply chain
Decision Support Systems
Echelon base-stock policies are financially sub-optimal
Operations Research Letters
Financing newsvendor inventory
Operations Research Letters
Mitigating bankruptcy propagation through contractual incentive schemes
Decision Support Systems
A joint model for cash and inventory management for a retailer under delay in payments
Computers and Industrial Engineering
Coordinating a three-level supply chain with delay in payments and a discounted interest rate
Computers and Industrial Engineering
| Hi-index | 0.01 |
Many owners of growing privately held firms make operational and financial decisions in an effort to maximize the expected present value of the proceeds from an initial public offering (IPO). We ask: "What is the right time to make an IPO?" and "How should operational and financial decisions be coordinated to increase the likelihood of a successful IPO?" Financial and operational decisions in this problem are linked because adequate financial capital is crucial for operational decisions to be feasible and operational decisions affect the firm's access to financial resources. The IPO event is treated as a stopping time in an infinite-horizon discounted Markov decision process. Unlike traditional stopping-time models, at every stage the model includes other decisions such as production, sales, and loan size. The results include (1) characterization of an optimal capacity-expansion policy, (2) sufficient conditions for a monotone threshold rule to yield an optimal IPO decision, and (3) algorithmic implications of results in (1) and (2).