The authors analyze a finite horizon,single product,period review model in which pricingand inventory decisions are made simultaneously.Demands in different periods are random variablesthat are independent of each oth...The authors analyze a finite horizon,single product,period review model in which pricingand inventory decisions are made simultaneously.Demands in different periods are random variablesthat are independent of each other and their distributions depend on the product price.Pricing andordering decisions are made at the beginning of each period and all shortage are backlogged.Orderingcost is a convex function of the amount ordered.The objective is to find an inventory and pricing policymaximizing expected discounted profit over the finite horizon.The authors characterize the structure ofthe optimal combined pricing and inventory strategy for this model.Moreover,the authors demonstratehow the profit-to-go function,order up to level,reorder point and optimal price change with respectto state and time.展开更多
基金supported by the National Natural Science Foundation of China under Grant Nos.70621061,70671100,70501014Beijing Philosophy and Social Science, Research Center for Beijing Transportation Development
文摘The authors analyze a finite horizon,single product,period review model in which pricingand inventory decisions are made simultaneously.Demands in different periods are random variablesthat are independent of each other and their distributions depend on the product price.Pricing andordering decisions are made at the beginning of each period and all shortage are backlogged.Orderingcost is a convex function of the amount ordered.The objective is to find an inventory and pricing policymaximizing expected discounted profit over the finite horizon.The authors characterize the structure ofthe optimal combined pricing and inventory strategy for this model.Moreover,the authors demonstratehow the profit-to-go function,order up to level,reorder point and optimal price change with respectto state and time.
