Simchi-Levi and co-author win prize for three papers

David Simchi-Levi

Courtesy of MIT Engineering Systems Division
October 16, 2009

LGO-SDM codirector David Simchi-Levi, Professor of Civil and Environmental Engineering and Engineering Systems, and co-author Xin Chen, assistant professor at the University of Illinois at Urbana-Champaign, won the Institute for Operations Research and the Management Sciences (INFORMS) 2009 Revenue Management and Pricing Section Prize for three papers about coordinating inventory and pricing strategies in the supply chain.

The citation said: "These works are in the best tradition of the practice of Operations Research and Management Science. The papers present a fundamental contribution and advancement of our understanding of the integration of inventory control and dynamic pricing decisions. By introducing the concept of ‘Symmetric K-Concave functions’ the authors generalized the well-known (S,s) policy and characterized optimal inventory and pricing strategies. These papers have also helped introduce revenue management and pricing problems to a broader audience in the operations research community. For these reasons they will stand as seminal papers of the field."

The papers are:

  • Chen, X. and D. Simchi-Levi, (2004), "Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: The Finite Horizon Case." Operations Research, 52 pp. 887-896.
  • Chen, X. and D. Simchi-Levi, (2004), "Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: The Infinite Horizon Case." Mathematics of Operations Research, 29 pp. 698-723.
  • Chen, X. and D. Simchi-Levi, (2006), "Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: The Continuous Review Model." Operations Research Letters, 36 pp. 323-332.