A Note on the Structure of Joint Inventory-Pricing Control with Lead Times.

Pang, Zhan and Chen, Frank (Youhua) and Feng, Youyi (2012) A Note on the Structure of Joint Inventory-Pricing Control with Lead Times. Operations Research, 60 (3). pp. 581-587. ISSN 0030-364X

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Abstract

We consider a joint inventory-pricing control problem for a periodic-review, single-stage inventory system with a positive order leadtime and a linear order cost. Demands in consecutive periods are independent but their distributions depend on the price in accordance with a stochastic demand function of additive form. Pricing and ordering decisions are made simultaneously at the beginning of each period. The objective is to maximize the total expected discounted profit over a finite horizon. We partially characterize the structure of the optimal joint ordering and pricing policies. We also show that our structural analysis can be extended to a multi-stage (or serial) inventory system with constant or stochastic leadtimes and an assemble-to-order system with price-sensitive demand.

Item Type:
Journal Article
Journal or Publication Title:
Operations Research
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
ID Code:
67236
Deposited By:
Deposited On:
19 Oct 2013 14:19
Refereed?:
Yes
Published?:
Published
Last Modified:
09 Sep 2020 01:36