(s, S) Optimality in Joint Inventory-Pricing Control: An Alternate Approach

نویسندگان

  • Woonghee Tim Huh
  • Ganesh Janakiraman
چکیده

We study a stationary, single-stage inventory system, under periodic review, with fixed ordering costs and multiple sales levers (such as pricing, advertising, etc.). We show the optimality of (s, S)-type policies in these settings under both the backordering and lost-sales assumptions. Our analysis is constructive, and is based on a condition which we identify as being key to proving the (s, S) structure. This condition is entirely based on the single-period profit function and the demand model. Our optimality results complement the existing results in this area. We also provide improved bounds on the optimal (s, S) parameters.

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Optimality Results in Inventory-Pricing Control: An Alternate Approach

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عنوان ژورنال:
  • Operations Research

دوره 56  شماره 

صفحات  -

تاریخ انتشار 2008