Procurement, Dynamic Pricing, and Early Exit Decisions for Products with Short Life Cycles

• Published in: Methodology and computing in applied probability Vol. 27; no. 3; p. 65
• Main Authors: Ertekin, Elifnas, Frenk, J. B. G., Pehlivan, Canan, Sleptchenko, Andrei
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.09.2025; Springer Nature B.V
• Subjects: Algorithms; Business and Management; Continuous time systems; Costs; Decisions; Dynamic programming; Economics; Electrical Engineering; Life Sciences; Market exit; Mathematics and Statistics; Numerical analysis; Optimization; Order quantity; Pricing; Pricing policies; Procurement; Profits; Statistics; Variables; 60G55; Non-homogeneous poisson processes; Optimal pricing policy; 90C39; 60J28; 90B05; Dynamic programming; Inventory

We revisit the finite-horizon profit maximization problem of a supplier selling a product with a short life cycle. Earlier literature on this problem generally assumes that the pricing policy and the initial procurement decision are the main tools to boost revenues. A small number of recent papers b...