Optimal ordering and pricing policies in a single-period environment with multivariate demand and markdowns

A single-period inventory model is investigated in which the demand of the product is a deterministic, multivariate function of price, time, and level of inventory. Models are formulated for the basic pricing case and the case with a markdown during the season. Solution methodologies are presented f...

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Bibliographic Details
Published inEuropean journal of operational research Vol. 103; no. 3; pp. 573 - 583
Main Authors URBAN, T. L, BAKER, R. C
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier 16.12.1997
Elsevier Sequoia S.A
SeriesEuropean Journal of Operational Research
Subjects
Applied sciences
Exact sciences and technology
Inventory control, production control. Distribution
Inventory management
Operational research and scientific management
Operational research. Management science
Operations research
Optimization
Pricing policies
Studies
Demand
Inventory control
Sensitivity analysis
Discount
Optimization
Pricing
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Summary:A single-period inventory model is investigated in which the demand of the product is a deterministic, multivariate function of price, time, and level of inventory. Models are formulated for the basic pricing case and the case with a markdown during the season. Solution methodologies are presented for each case when the pricing decisions are predetermined and when they are decision variables. Comments on the practical use of this model are presented, and sensitivity analysis is conducted on the decision variable and demand parameters.
ISSN:0377-2217
1872-6860
DOI:10.1016/S0377-2217(96)00301-3