Centralized and Competitive Inventory Models with Demand Substitution

Simon School of Business Working Paper No. OP 02-01

13 Pages Posted: 28 Apr 2002

See all articles by Serguei Netessine

Serguei Netessine

The Wharton School, University of Pennsylvania

Nils Rudi

INSEAD - Technology and Operations Management

Date Written: April 2002

Abstract

A standard problem in operations literature is optimal stocking of substitutable products. We consider a very general consumer-driven substitution problem with an arbitrary number of products and a quite general substitution structure, both under centralized inventory management and competition. We obtain analytically tractable solutions that generalize and extend the results of several earlier papers in this area and also lead to new results.

Keywords: Newsvendor, Substitution, Stochastic, Programming, Inventory, Supply Chain

Suggested Citation

Netessine, Serguei and Rudi, Nils, Centralized and Competitive Inventory Models with Demand Substitution (April 2002). Simon School of Business Working Paper No. OP 02-01. Available at SSRN: https://ssrn.com/abstract=303779 or http://dx.doi.org/10.2139/ssrn.303779

Serguei Netessine (Contact Author)

The Wharton School, University of Pennsylvania ( email )

3730 Walnut Street
Philadelphia, PA 19104-6367
United States
(215) 573 3571 (Phone)

HOME PAGE: http://www.netessine.com

Nils Rudi

INSEAD - Technology and Operations Management ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex
France

Register to save articles to
your library

Register

Paper statistics

Downloads
666
Abstract Views
4,424
rank
38,160
PlumX Metrics