Optimal bundle formation and pricing of two products with limited stock

Cataloged from PDF version of article.In this study, we consider the stochastic modeling of a retail firm that sells two types of perishable products in a single period not only as independent items but also as a bundle. Our emphasis is on understanding the bundling practices on the inventory and pricing decisions of the firm. One of the issues we address is to decide on the number of bundles to be formed from the initial product inventory levels and the price of the bundle to maximize the expected profit. Product demands follow a Poisson Process with a price dependent rate. Customer reservation prices are assumed to have a joint distribution. We study the impact of reservation price distributions, initial inventory levels, product prices, demand arrival rates and cost of bundling. We observe that the expected profit decreases as the correlation between the reservation prices of two products increases. With negative correlation, bundling cost has a significant impact on the number of bundles formed. When the product prices are low, the retailer sells individual products as well as the bundle (mixed bundling), when they are high, the retailer sells only bundles (pure bundling). The expected profit and the number of bundles offered decrease as the variance of the reservation price distribution increases. For high starting inventory levels, the retailer reduces bundle price and offers more bundles. The number of bundle sales decreases and the number of individual product sales increases when the arrival rate increases since the need for bundling decreases. Impacts of substitutability and complementarity of products are also investigated. The retailer forms more bundles, or charges higher prices for the bundle or both as the products become more complementary and less substitutable. © 2009 Elsevier B.V. All rights reserved

Bundle pricing of inventories with stochastic demand

Cataloged from PDF version of article.We consider a retailer selling a fixed inventory of two perishable products over a finite horizon. Assuming Poisson arrivals and a bivariate reservation price distribution, we determine the optimal product and bundle prices that maximize the expected revenue. Our results indicate that the performances of mixed bundling, pure bundling and unbundled sales strategies heavily depend on the parameters of the demand process and the initial inventory levels. Bundling appears to be most effective with negatively correlated reservation prices and high starting inventory levels. When the starting inventory levels are equal and in excess of average demand, most of the benefits of bundling can be achieved through pure bundling. However, the mixed bundling strategy dominates the other two when the starting inventory levels are not equal. We also observe that an incorrect modeling of the reservation prices may lead to significant losses. The model is extended to allow for price changes during the selling horizon. It is shown that offering price bundles mid-season may be more effective than changing individual product prices. 2008 Elsevier B.V. All rights reserved

In vivo tumor growth of high-grade serous ovarian cancer cell lines

OBJECTIVE: Genomic studies of ovarian cancer (OC) cell lines frequently used in research revealed that these cells do not fully represent high-grade serous ovarian cancer (HGSOC), the most common OC histologic type. However, OC lines that appear to genomically resemble HGSOC have not been extensively used and their growth characteristics in murine xenografts are essentially unknown. METHODS: To better understand growth patterns and characteristics of HGSOC cell lines in vivo, CAOV3, COV362, KURAMOCHI, NIH-OVCAR3, OVCAR4, OVCAR5, OVCAR8, OVSAHO, OVKATE, SNU119 and UWB1.289 cells were assessed for tumor formation in nude mice. Cells were injected intraperitoneally (i.p.) or subcutaneously (s.c.) in female athymic nude mice and allowed to grow (maximum of 90 days) and tumor formation was analyzed. All tumors were sectioned and assessed using H&E staining and immunohistochemistry for p53, PAX8 and WT1 expression. RESULTS: Six lines (OVCAR3, OVCAR4, OVCAR5, OVCAR8, CAOV3, and OVSAHO) formed i.p xenografts with HGSOC histology. OVKATE and COV362 formed s.c. tumors only. Rapid tumor formation was observed for OVCAR3, OVCAR5 and OVCAR8, but only OVCAR8 reliably formed ascites. Tumors derived from OVCAR3, OVCAR4, and OVKATE displayed papillary features. Of the 11 lines examined, three (Kuramochi, SNU119 and UWB1.289) were non-tumorigenic. CONCLUSIONS: Our findings help further define which HGSOC cell models reliably generate tumors and/or ascites, critical information for preclinical drug development, validating in vitro findings, imaging and prevention studies by the OC research community

Inventory and coordination issues with two substitutable products

Cataloged from PDF version of article.This study considers a two level supply chain in a newsboy setting with two substitutable products. Demands for the two products are assumed independent as long as both are available. If, however, a product stocks out, some of its demand is transferred to the available one with a known probability which ultimately creates a dependence on the amount of purchased items. The retailer is allowed to return some or all of the unsold products to the manufacturer with some credit. The expected chain profit, the retailer’s and the manufacturer’s profit expressions are derived under general conditions. Special cases are inspected to investigate the conditions under which channel coordination is achieved. It is demonstrated that channel coordination can not be achieved if unlimited returns are allowed with full credit, a result that agrees with the findings of Pasternak [B.A. Pasternack, Optimal pricing and return policies for perishable commodities, Market. Sci. 4 (1985) 166– 176] for the single item case. For the cases of unlimited returns with partial credit, the conditions for coordination are derived for one way full substitutions. For exponential demand explicit expressions for the channel and retailer’s expected profit functions are provided. 2009 Elsevier Inc. All rights reserved

A maintenance policy for a system with multi-state components: an approximate solution

Cataloged from PDF version of article.For maintenance and quality assessment purposes, various performance levels for both systems and components are identified, usually as a function of the deterioration. In this study, we consider a multicomponent system where the lifetime of each component is described by several stages, (0,…,S), which are further classified as good, doubtful, preventive maintenance due (PM due) and down. A control policy is suggested where the system is replaced when a component enters a PM due or a down state and the number of components in the doubtful states (K,…,S−2) is at least N. All maintenance activities are assumed to take negligible time. The exact description of the underlying stochastic model under the policy is very complicated. We therefore propose some approximations, which allow an explicit expression for the long run average cost function, which is minimized w.r.t. (K,N) by numerical methods. Sensitivity of the model to system parameters and the performance of the approximation are investigated through several examples