This paper examines the effect that product pricing has on the dynamics and variability of a supply chain, with a focus in retail inventory. Pricing policies and strategies and the impacts of prices on demand and inventories within the retail supply chain environment are reviewed. Recent pricing and markdown research is examined. An example model is presented that is stochastic and uses simulat...

This paper studies the effects of information sharing strategies on supply chain performance. We first consider four common types of information sharing strategies for a supply chain of a single product: (1) order information sharing where every stage of the supply chain only knows the orders from its immediate downstream stage; (2) demand information sharing where every stage has full informa...

In an e-retailing setting, the efficient utilization of inventory, storage space, and labor is paramount to achieving high levels of customer service and company profits. To optimize the storage space and labor, a retailer will split the warehouse into two storage regions with different densities. One region is for picking customer orders and the other to hold reserve stock. As a consequence, t...

This study proposes a new multi-item inventory model with hybrid cost parameters under a fuzzy-stochastic constraint and permissible delay in payment. The price and marketing expenditure dependent stochastic demand and the demand dependent the unit production cost are considered. Shortages are allowed and partially backordered. The main objective of this paper is to determine selling price, mar...

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...

Substitution behaviors happen frequently when demands are uncertain in a production inventory system, and it has attracted enough attention from firms. Related researches can be clearly classified into firm-driven substitution and customer-driven substitution. However, if production inventory is stock-out when a firm updates its product, the firm may use a new generation product to satisfy the ...

Intuition may lead to the hypothesis that in stochastic inventory systems a higher demand variability results in larger variances and in an increase of total expected system costs. In a recent paper, Song [5] formally proved this assertion to hold for a certain class of inventory models (including the Newsboy Problem), given a particular definition of variability. Here we use stochastic dominan...

This paper studies a multi-product competitive newsboy problem with shortage penalty cost and partial product substitution. We characterize the unique Nash equilibrium of the competitive model and analyze some properties of the equilibrium. An iterative algorithm is developed on the basis of approximating the effective demand as well as the expected profit function for each product. Numerical e...

A typical discrete-time sequential decision problem involves a system whose state is assumed to evolve either deterministically or probabilistically over time-periods that are often called stages. This evolution is affected by the decisions a planner makes at the beginning of each stage after observing the system state. The decision maker’s goal then is to optimize some measure of system perfor...