A pricing model for clearing end-of-season retail inventory

Dynamic Pricing of Limited Inventories When Customers Negotiate

Although take-it-or-leave-it pricing is the main mode of operation for many retailers, a number of retailers discreetly allow price negotiation when some haggle-prone customers ask for a bargain. At these retailers, the posted price, which itself is subject to dynamic adjustments in response to the pace of sales during the selling season, serves two important roles: (i) it is the take-it-or-lea...

Demand Uncertainty and Price Maintenance: Markdowns as Destructive Competition

This paper offers a new theory of destructive competition. We compare minimum resale price maintenance (RPM) to retail market clearing in a model with a monopolistic manufacturer selling to competitive retailers. In both the RPM and Flexible-Pricing Games, retailers must order inventories before the realization of demand uncertainty. We find that manufacturer profits and equilibrium inventories...

Joint pricing, inventory, and preservation decisions for deteriorating items with stochastic demand and promotional efforts

This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation t...

Revenue management and seller pricing decisions in retail industry: An agent-based model

Pricing Policy for Supply Chain in the Electronic Commerce Environment

This paper presents a model for designing the pricing policies for the supply chain whose channel is integrated with retail and e-tail. In order to incentive the retailer, the manufacture in the supply chain adopts return policy promising that any unsold product can be returned to the manufacture for a partial refund in the end of the selling season. How can the manufacture coordinate the prici...