Coordinating Pricing and Inventory Replenishment with Nonparametric Demand Learning

Dynamic Pricing and Replenishment in a Production - Inventory System with Markov - Modulated Demand

We consider dynamic pricing and replenishment decisions for a production/inventory system modeled by a make-to-stock queue. The potential customer demand is generated by a MarkovModulated (environment-dependent) Poisson process and the actual demand depends on the price offered at the time of the transaction. Using a Markov Decision Process framework, we obtain results on the structure of the o...

Optimal Pricing and Replenishment in a Single-Product Inventory System with Brownian Demand

We study an inventory system that supplies price-sensitive demand modeled by Brownian motion. The optimal pricing and inventory replenishment decisions under both long-run average and discounted objectives are derived, and related to or contrasted with previously known results. In addition, we emphasize the interplay between pricing and replenishment decisions, and the ways in which they react ...

Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: the Infinite Horizon

We analyze an infinite horizon, single product, periodic review model in which pricing and production/inventory decisions are made simultaneously. Demands in different periods are identically distributed random variables that are independent of each other and their distributions depend on the product price. Pricing and ordering decisions are made at the beginning of each period and all shortage...

Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost

Inventory Systems with Advance Demand Information and Random Replenishment Times

Advance demand information, when used effectively, improves the performance of production/inventory systems. The extent of improvement however depends on certain factors. We investigate the influence of random supply lead times on a single-stage inventory system with advance demand information. It is found that the supply lead time variability diminishes the benefits of advance demand information.