Continuously Increasing Price in an Inventory Cycle: An Optimal Strategy for E-Tailers

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Continuously Increasing Price in an Inventory Cycle: An Optimal Strategy for E-Tailers

Operations researchers have always assumed that when a product’s unit cost is constant and its demand curve is known and stationary, a retailer of the product would find it optimal to replenish the inventory with a fixed quantity and to sell the product always at a fixed price. We present, with proof, a model that shows that, in such a case, an e-tailer is better off using a continuously increa...

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ژورنال

عنوان ژورنال: Journal of Applied Mathematics and Decision Sciences

سال: 2008

ISSN: 1173-9126,1532-7612

DOI: 10.1155/2008/483267