Lauren Xiaoyuan Lu

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Capacity addition and withdrawal decisions are among the most important strategic decisions made by …rms in oligopolistic industries. In this paper, we develop and analyze a fully dynamic model of an oligopolistic industry with lumpy capacity and lumpy investment/disinvestment. We use our model to suggest answers to two questions. First, what economic(More)
M oving production to low-wage countries may reduce manufacturing costs, but it increases logistics costs and is subject to foreign trade barriers, among others. This paper studies a manufacturer's multimarket facility network design problem and investigates the offshoring decision from a network capacity investment perspective. We analyze a firm that(More)
W e study how rework routing together with wage and piece-rate compensation can strengthen incentives for quality. Traditionally, rework is assigned back to the agent who generates the defect (in a self-routing scheme) or to another agent dedicated to rework (in a dedicated routing scheme). In contrast, a novel cross-routing scheme allocates rework to a(More)
We consider a supply chain in which a supplier sells products to multiple retailers. When orders from the retailers exceed the supplier's capacity, she must employ an allocation mechanism to balance supply and demand. In particular, we consider a commonly used allocation scheme in the automobile industry: turn-and-earn, which uses past sales to allocate(More)
We analyze a dynamic bargaining game between a seller and a buyer, who negotiate over quantity and payment to trade for a product. Both firms are impatient, and they alternate in making a contract offer until an agreement is reached. The buyer is privately informed about his type, which can be either high or low, with respect to the property of the(More)
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