The outflow ranking method for weighted directed graphs

A ranking method assigns to every weighted directed graph a (weak) ordering of the nodes. In this paper we axiomatize the ranking method that ranks the nodes according to their outflow using four independent axioms. Besides the well-known axioms of anonymity and positive responsiveness we introduce outflow monotonicity – meaning that in pairwise comparison between two nodes, a node is not doing worse in case its own outflow does not decrease and the other node’s outflow does not increase – and order preservation – meaning that adding two weighted digraphs such that the pairwise ranking between two nodes is the same in both weighted digraphs, then this is also their pairwise ranking in the ‘sum’ weighted digraph. The outflow ranking method generalizes the ranking by outdegree for directed graphs, and therefore also generalizes the ranking by Copeland score for tournaments.

Dynamic pricing models for used products in remanufacturing with lost-sales and uncertain quality

In this paper, we investigate the remanufacturing problem of pricing single-class used products (cores) in the face of random price-dependent returns and random demand. Specifically, we propose a dynamic pricing policy for the cores and then model the problem as a continuous-time Markov decision process. Our models are designed to address three objectives: finite horizon total cost minimization, infinite horizon discounted cost, and average cost minimization. Besides proving optimal policy uniqueness and establishing monotonicity results for the infinite horizon problem, we also characterize the structures of the optimal policies, which can greatly simplify the computational procedure. Finally, we use computational examples to assess the impacts of specific parameters on optimal price and reveal the benefits of a dynamic pricing policy. © 2013 Elsevier B.V. All rights reserved.