In this paper the authors analyze a multi-period pricing and inventory problem of a single item with stochastic demand subject to reference effects. The demand is dependent on the current price and the reference price which is developed by the customers as a benchmark. The randomness is due to an additive random term and the planning horizon can be finite or infinite. The authors formulate the problem using the safety stock as the decision variable. Under some specific conditions, they show that for all demand models, the original problem can be decomposed into two subproblems, the inventory problem and the pricing problem. The solution of the subproblems is easier than solving the original problem, which is a stochastic dynamic programming problem with two state and two action variables. In this context, the authors show that a steady state solution exists for the infinite horizon problem and they characterize the steady state solution.
Recensione dell'articolo:(Guler, M. Guray; Biligic, Taner; Gullu, Refik - " Joint pricing and inventory control for additive demand models with reference. " - Ann. Oper. Res. 226 (2015), 255-276.) MR3313154 MathSciNet ISSN 2167-5163
Leonardo Pasini
2015-01-01
Abstract
In this paper the authors analyze a multi-period pricing and inventory problem of a single item with stochastic demand subject to reference effects. The demand is dependent on the current price and the reference price which is developed by the customers as a benchmark. The randomness is due to an additive random term and the planning horizon can be finite or infinite. The authors formulate the problem using the safety stock as the decision variable. Under some specific conditions, they show that for all demand models, the original problem can be decomposed into two subproblems, the inventory problem and the pricing problem. The solution of the subproblems is easier than solving the original problem, which is a stochastic dynamic programming problem with two state and two action variables. In this context, the authors show that a steady state solution exists for the infinite horizon problem and they characterize the steady state solution.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
