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A Note on the Structure of Joint Inventory-Pricing Control with Lead Times.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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A Note on the Structure of Joint Inventory-Pricing Control with Lead Times. / Pang, Zhan; Chen, Frank (Youhua); Feng, Youyi.

In: Operations Research, Vol. 60, No. 3, 05.2012, p. 581-587.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Pang, Z, Chen, F & Feng, Y 2012, 'A Note on the Structure of Joint Inventory-Pricing Control with Lead Times.', Operations Research, vol. 60, no. 3, pp. 581-587. https://doi.org/10.1287/opre.1120.1052

APA

Pang, Z., Chen, F., & Feng, Y. (2012). A Note on the Structure of Joint Inventory-Pricing Control with Lead Times. Operations Research, 60(3), 581-587. https://doi.org/10.1287/opre.1120.1052

Vancouver

Pang Z, Chen F, Feng Y. A Note on the Structure of Joint Inventory-Pricing Control with Lead Times. Operations Research. 2012 May;60(3):581-587. doi: 10.1287/opre.1120.1052

Author

Pang, Zhan ; Chen, Frank (Youhua) ; Feng, Youyi. / A Note on the Structure of Joint Inventory-Pricing Control with Lead Times. In: Operations Research. 2012 ; Vol. 60, No. 3. pp. 581-587.

Bibtex

@article{f3643364812a4013a37314381a3851f1,
title = "A Note on the Structure of Joint Inventory-Pricing Control with Lead Times.",
abstract = "We consider a joint inventory-pricing control problem for a periodic-review, single-stage inventory system with a positive order leadtime and a linear order cost. Demands in consecutive periods are independent but their distributions depend on the price in accordance with a stochastic demand function of additive form. Pricing and ordering decisions are made simultaneously at the beginning of each period. The objective is to maximize the total expected discounted profit over a finite horizon. We partially characterize the structure of the optimal joint ordering and pricing policies. We also show that our structural analysis can be extendedto a multi-stage (or serial) inventory system with constant or stochastic leadtimes and an assemble-to-order system with price-sensitive demand.",
keywords = "Pricing, Inventory Management, Stochastic Dynamic Programming",
author = "Zhan Pang and Chen, {Frank (Youhua)} and Youyi Feng",
year = "2012",
month = may,
doi = "10.1287/opre.1120.1052",
language = "English",
volume = "60",
pages = "581--587",
journal = "Operations Research",
issn = "0030-364X",
publisher = "INFORMS Inst.for Operations Res.and the Management Sciences",
number = "3",

}

RIS

TY - JOUR

T1 - A Note on the Structure of Joint Inventory-Pricing Control with Lead Times.

AU - Pang, Zhan

AU - Chen, Frank (Youhua)

AU - Feng, Youyi

PY - 2012/5

Y1 - 2012/5

N2 - We consider a joint inventory-pricing control problem for a periodic-review, single-stage inventory system with a positive order leadtime and a linear order cost. Demands in consecutive periods are independent but their distributions depend on the price in accordance with a stochastic demand function of additive form. Pricing and ordering decisions are made simultaneously at the beginning of each period. The objective is to maximize the total expected discounted profit over a finite horizon. We partially characterize the structure of the optimal joint ordering and pricing policies. We also show that our structural analysis can be extendedto a multi-stage (or serial) inventory system with constant or stochastic leadtimes and an assemble-to-order system with price-sensitive demand.

AB - We consider a joint inventory-pricing control problem for a periodic-review, single-stage inventory system with a positive order leadtime and a linear order cost. Demands in consecutive periods are independent but their distributions depend on the price in accordance with a stochastic demand function of additive form. Pricing and ordering decisions are made simultaneously at the beginning of each period. The objective is to maximize the total expected discounted profit over a finite horizon. We partially characterize the structure of the optimal joint ordering and pricing policies. We also show that our structural analysis can be extendedto a multi-stage (or serial) inventory system with constant or stochastic leadtimes and an assemble-to-order system with price-sensitive demand.

KW - Pricing

KW - Inventory Management

KW - Stochastic Dynamic Programming

U2 - 10.1287/opre.1120.1052

DO - 10.1287/opre.1120.1052

M3 - Journal article

VL - 60

SP - 581

EP - 587

JO - Operations Research

JF - Operations Research

SN - 0030-364X

IS - 3

ER -