Intelligent markdown pricing

Why Markdown as a Pricing Modality?

Markdown as a pricing modality is ubiquitous in retail whereas everyday-low-price (EDLP) remains relatively rare (despite its several advantages, such as simplicity). Using a stylized model, we explore whether and why retailers can use either of these pricing modalities as an effective defense against a competitor entering the market with the alternative pricing modality to sell an identical pr...

Markdown money contracts for perishable goods with clearance pricing

It is common in practice that retailers liquidate unsold perishable goods via clearance pricing. Markdown money is frequently used between manufacturers and retailers in such a supply chain setting. It is a form of rebate from a manufacturer to subsidize a retailer’s clearance pricing after the regular season. Two forms of markdown money are percent markdown money, in which the markdown money i...

Optimal Markdown Pricing: Implications of Inventory Display Formats in the Presence of Strategic Customers

We propose a game-theoretical model of a retailer who sells a limited inventory of a product over a finite selling season by using one of two inventory display formats: Display All (DA) and Display One (DO). Under DA, the retailer displays all available units so that each arriving customer has perfect information about the actual inventory level. Under DO, the retailer displays only one unit at...

The application of fuzzy programming to the aggregate production planning-markdown pricing problem

It is wildly believed that the information sharing and cooperation become important now for improving the performance of the retailer and the manufacturer of the short lifcycle product. This paper suggests a way to enhance the competency of short lifecycle products by integrating the markdown pricing policy into the aggregate production planning.An Aggregate Production Planning -Markdown Pricin...

The Road to More Intelligent Telephone Pricing