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We examine a possibly capacitated, periodically reviewed, single-stage inventory system where replenishment can be obtained either through a regular fixed lead time channel, or, for a premium, via a channel with a smaller fixed lead time. We consider the case when the unsatisfied demands are backordered over an infinite horizon, introducing the easily(More)
Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in a short term, the long-term consequences of such a strategy are not immediately obvious: more discounted last-minute tickets may lead to more consumers anticipating the discount(More)
In many services, the quality or value provided by the service increases with the time the service-provider spends with the customer. However, longer service times also result in longer waits for customers. We term such services, in which the interaction between quality and speed is critical, as customer-intensive services. In a queueing framework, we(More)
Over the past few years, firms in the travel and entertainment industries have begun using novel sales strategies for revenue management. In this chapter, we study a selling strategy called opaque selling, in which firms guarantee one of several fully specified products, but hide the identity of the product that the consumer will actually obtain until after(More)
We study how consumers with waiting cost disutility choose between two congested services of unknown service value. Consumers observe an imperfect private signal indicating which service facility may provide better service value, as well as the queue lengths at the service facilities before making their choice. If more consumers choose the same service(More)
Firms that rely on functioning mission-critical equipment for their businesses cannot a¤ord signi…cant operational downtime due to system disruptions. To minimize the impact of disruptions , a proper incentive mechanism has to be in place so that the suppliers provide prompt restoration and recovery services to the customer. A widely adopted incentive(More)
We consider the informational role of a queue when a firm can adjust its price to signal its quality to uninformed consumers. When the proportion of informed consumers is relatively high, increasing the price of a high-quality good is a superior signaling strategy. In this case, high-and low-quality firms choose different prices, so the queue has no role in(More)
In the Operations Research queue-joining literature, beginning with Naor (1969), the queue joining probability is monotonic decreasing in the queue length; the longer the queue, the fewer consumers join. Recent academic and empirical evidence indicates that queue-joining probabilities may not always be decreasing in the queue length. We provide a simple(More)