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This paper deals with the channel coordination problem in the supply chain for an innovative product. The partially known information about the demand is represented by a possibility distribution. Since the life cycle of the innovative product is short, how to determine the optimal order amount is a typical one-shot decision problem. With the one-shot decision theory, Stackelberg equilibriums are...
This paper extends the standard newsvendor problem to a channel coordination problem in the supply chain with an innovative product. Acting as a Stackelberg leader, the manufacturer sells to a retailer facing a newsvendor problem. The partly known demand information is represented by a possibility distribution. Since the life cycle of the innovative product is short, how to determine the optimal order...
For the first time, the locational marginal pricing (LMP) based market model is studied on a Chinese regional market. This paper reports upon preliminary results of applying LMP market design in North China Grid (NCG). Common key features of successful markets are discussed in reference to the existing LMP markets in the U.S. and other countries. As the pricing and dispatch framework of an LMP market,...
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