Coordinating inventory control and pricing strategies: The continuous review model

Coordinating inventory control and pricing strategies: The continuous review model

We analyze an infinite horizon, single product, continuous review model in which pricing and inventory decisions are made simultaneously and ordering cost includes a fixed cost. We show that there exists a stationary (s, S) inventory policy maximizing the expected discounted or expected average profit under general conditions. © 2005 Elsevier B.V. All rights reserved.

Coordinating Inventory Control and Pricing Strategies for Perishable Products

We analyze a joint pricing and inventory control problem for a perishable product with a fixed lifetime over a finite horizon. In each period, demand depends on the price of the current period plus an additive random term. Inventories can be intentionally disposed of and those that reach their lifetime have to be disposed of. The objective is to find a joint pricing, ordering, and disposal poli...

Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost: the Infinite Horizon

We analyze an infinite horizon, single product, periodic review model in which pricing and production/inventory decisions are made simultaneously. Demands in different periods are identically distributed random variables that are independent of each other and their distributions depend on the product price. Pricing and ordering decisions are made at the beginning of each period and all shortage...

The Effectiveness of a Simple Policy for Coordinating Inventory Control and Pricing Strategies

We investigate the effectiveness of an (s, S, p) policy relative to an (s, S, A, p) policy in a single product, periodic review, finite horizon model with stochastic multiplicative demand and fixed ordering cost, in which an (s, S, A, p) policy is optimal. An extensive numerical study shows that empirically an (s, S, p) policy is highly effective relative to an (s, S, A, p) policy. We also form...

Coordinating Inventory Control and Pricing Strategies with Random Demand and Fixed Ordering Cost