{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,2]],"date-time":"2026-05-02T07:13:11Z","timestamp":1777705991270,"version":"3.51.4"},"reference-count":49,"publisher":"SAGE Publications","issue":"1","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["IFS"],"published-print":{"date-parts":[[2022,6,1]]},"abstract":"<jats:p>\u00a0The aim of this paper is to investigate pricing and production decisions of a monopoly firm that operates a co-product technology with two grades. A novel mathematical model that embeds a utility-maximizing customer choice model is developed to solve this problem. The closed-form expressions for the optimal solutions are derived and the results suggest that the distribution of customer valuations, yield rate and demand uncertainties have a vital influence on the firm\u2019s optimal prices and profits. We then extend our study by allowing stockout-based substitution where a customer may be willing to purchase a substitute if his most preferred product is not available but the substitute provides him with non-negative utility. The results indicate that disregarding stockout-based substitution (i) results in severe supply-demand mismatches for the product line in two directions; (ii) leads to higher or lower profit margins for both products; (iii) may not cause profit loss when the prices of both products are exogenous; however, this result does not hold when the prices are endogenous.<\/jats:p>","DOI":"10.3233\/jifs-212317","type":"journal-article","created":{"date-parts":[[2022,2,8]],"date-time":"2022-02-08T12:00:40Z","timestamp":1644321640000},"page":"495-507","source":"Crossref","is-referenced-by-count":0,"title":["Managing supply risk for high-tech products under stockout-based substitution1"],"prefix":"10.1177","volume":"43","author":[{"given":"Ya-na","family":"Wang","sequence":"first","affiliation":[{"name":"School of Transportation and Logistics, Southwest Jiaotong University of China, Chengdu, China"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Guo-hua","family":"Zhou","sequence":"additional","affiliation":[{"name":"School of Economics and Management, Southwest Jiaotong University of China, Chengdu, China"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"179","reference":[{"key":"10.3233\/JIFS-212317_ref2","unstructured":"Sonnet M.C. , Cost of stockouts in the microprocessor business and its impact in determining the optimal service level, Ph.D. Dissertation, Massachusetts Institute of Technology, 2005."},{"issue":"5","key":"10.3233\/JIFS-212317_ref3","doi-asserted-by":"crossref","first-page":"999","DOI":"10.1287\/opre.40.5.999","article-title":"Ordering policies in an environment of stochastic yields and substitutable demands","volume":"40","author":"Bitran","year":"1992","journal-title":"Operations 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