Technical Note - Optimal Dynamic Joint Inventory-Pricing Control for Multiplicative Demand with Fixed Order Costs and Lost Sales
نویسندگان
چکیده
This note studies the optimal dynamic decision-making problem for a retailer in a price-sensitive, multiplicative demand framework. Our model incorporates lost sales, holding cost, fixed and variable procurement costs, as well as salvage value. We characterize the structure of the retailer’s (discounted) expected profit-maximizing dynamic inventory policy for both finite and infinite selling horizon problems.
منابع مشابه
Optimal Dynamic Joint Pricing and Inventory Control for Multiplicative Demand with Fixed Order Costs and Lost Sales
In this paper we study the optimal dynamic decision-making problem for a retailer selling a single product and facing price-sensitive, stochastic (multiplicative) demand in each period. Any leftover inventory for a period is carried over and charged a holding cost at the end of the period. Leftovers at the end of the selling horizon earn a non-negative salvage value. On the other hand, any unsa...
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ورودعنوان ژورنال:
- Operations Research
دوره 57 شماره
صفحات -
تاریخ انتشار 2009