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This paper evaluates the pricing and ordering policies of risk‐neutral, risk‐averse and risk‐seeking newsvendor‐type retailers facing price‐dependent stochastic demand and several sales‐promotion policies, namely pricing, rebates and advertising. Optimal pricing and ordering policies are obtained for the iso‐elastic demand function and for additive and multiplicative demand‐error structures. Performance is measured by the risk‐adjusted expected profit and evaluated across risk preferences. Pricing, rebate and advertising, in that order, are the most profitable sales‐promotion policies. The more risk averse the retailer, the lower its profit and the more it favors multiple promotion policies.

This article considers the joint development of the optimal pricing and ordering policies of a profit-maximizing retailer, faced with (i) a manufacturer trade incentive in the form of a price discount for itself or a rebate directly to the end customer; (ii) a stochastic consumer demand dependent upon the magnitude of the selling price and of the trade incentive, that is contrasted with a riskless demand, which is the expected value of the stochastic demand; and (iii) a single-period newsvendor-type framework. Additional analysis includes the development of equal profit policies in either form of trade incentive, an assessment of the conditions under which a one-dollar discount is more profitable than a one-dollar rebate, and an evaluation of the impact upon the retailer-expected profits of changes in either incentive or in the degree of demand uncertainty. A numerical example highlights the main features of the model. The analytical and numerical results clearly show that, as compared to the results for the riskless demand, dealing with uncertainty through a stochastic demand leads to (i) (lower) higher retail prices if additive (multiplicative) error, (ii) lower (higher) pass throughs if additive (multiplicative) error, (iii) higher claw backs in both error structures wherever applicable, and (iv) higher rebates to achieve equivalent profits in both error structures.

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This paper considers the prohlem of integrating the main components of working capital decisions within a discounted cash flow framework in order to study the interrelationships among inventory, procurement, cash discounts, accounts payable and account receivahle policies. Ihe model yields a set of policies which are not only simple to implement hut have intuitively appealing economic significance.

This paper examines the impact of the various types of foreign capital flows (or FCF) on the efficiency with which countries transform their respective resources into the achievements associated with the three dimensions (Life expectancy or LI, Educational attainment or EI and wealth or WI) of the Human Development Index. An important result is the identification of returns to scale as the main factor preventing some countries from achieving the total efficiency level assumed by standard economic analysis, if decision-making units (DMUs) or countries in this case, working along their respective production possibility frontiers, wish achieve the goal of optimizing the utilization of their resources.

Purchase price reductions, even on a one-time-only basis, allow retailers the opportunity to lower their own selling prices, albeit temporarily, in an effort to increase sales. This results in not only additional revenues but also in extra inventory costs. The model presented in this paper examines such a costlrevenue tradeoff, through simultaneous determination of the most profitable: (i) stock level to be purchased by the retailer; (ii) discount level to be passed on to the customers; (iii) stock level qualifying for the retailer's discount; and (iv) time to initiate the discount. Numerical examples are included throughout to illustrate the main features of the model.