Pricing computer services: queueing effects
Communications of the ACM
The role of inventory in delivery-time competition
Management Science
Dynamic scheduling of a multiclass make-to-stock queue
Operations Research
Numerical methods for stochastic control problems in continuous time
Numerical methods for stochastic control problems in continuous time
Setting base stock levels using product-form queueing networks
Management Science
Decision Support for Managing an Electronic Supply Chain
Electronic Commerce Research - Special issue on agents in electronic commerce
Queueing Systems: Theory and Applications
Combined Pricing and Inventory Control Under Uncertainty
Operations Research
Dynamic Control of a Queue with Adjustable Service Rate
Operations Research
Commissioned Paper: Capacity Management, Investment, and Hedging: Review and Recent Developments
Manufacturing & Service Operations Management
Self-Interested Routing in Queueing Networks
Management Science
Optimal Control and Hedging of Operations in the Presence of Financial Markets
Mathematics of Operations Research
Contact Centers with a Call-Back Option and Real-Time Delay Information
Operations Research
A Numerical Method for Solving Singular Stochastic Control Problems
Operations Research
Game theory and the practice of revenue management
Proceedings of the Behavioral and Quantitative Game Theory: Conference on Future Directions
A Monopolistic and Oligopolistic Stochastic Flow Revenue Management Model
Operations Research
Optimal pricing and production policies of a make-to-stock system with fluctuating demand
Probability in the Engineering and Informational Sciences
Dynamic Control of a Make-to-Order, Parallel-Server System with Cancellations
Operations Research
SIAM Journal on Control and Optimization
Yield management of workforce for IT service providers
Decision Support Systems
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Motivated by recent electronic marketplaces, we consider a single-product make-to-stock manufacturing system that uses two alternative selling channels: long-term contracts and a spot market of electronic orders. At time 0, the risk-averse manufacturer selects the long-term contract price, at which point buyers choose one of the two channels. The resulting long-term contract demand is a deterministic fluid, while the spot-market demand is modeled as a stochastic renewal process. An exponential reflected random walk model is used to model the spot-market price, which is correlated with the spot-market demand process. The manufacturer accepts or rejects each electronic order, and long-term contracts and accepted electronic orders are backordered if necessary. The manufacturer's control problem is to select the optimal long-term contract price as well as the optimal production (i.e., busy/idle) and electronic-order admission policies to maximize revenue minus inventory holding and backorder costs. Under heavy-traffic conditions, the problem is approximated by a diffusion-control problem, and analytical approximations are used to derive a policy that is simple, and reasonably accurate and robust.