Dynamic pricing, promotion and replenishment policies for a deteriorating item under permissible delay in payments

Yu Chung Tsao, Gwo Ji Sheen

研究成果: 雜誌貢獻期刊論文同行評審

178 引文 斯高帕斯(Scopus)

摘要

We study the problem of dynamic pricing, promotion and replenishment for a deteriorating item subject to the supplier's trade credit and retailer's promotional effort. In this paper we adopt a price- and time-dependent demand function to model the finite time horizon inventory for deteriorating items. The objective of this paper is to determine the optimal retail price, the promotional effort and the replenishment quantity so that the net profit is maximized. We discuss the properties and develop an algorithm for solving the problem described. The numerical analyses show that an appropriate promotion policy can benefit the retailer and that the promotion policy is important, especially for deteriorating items. Furthermore dynamic decision-making is shown to be superior to fixed decision-making in terms of profit maximization. Some special cases, such as with no credit period and for non-deteriorating items, are discussed as is the influence of the time-varying demand, the rate of deterioration and the credit period on the retailer behavior.

原文???core.languages.en_GB???
頁(從 - 到)3562-3580
頁數19
期刊Computers and Operations Research
35
發行號11
DOIs
出版狀態已出版 - 11月 2008

指紋

深入研究「Dynamic pricing, promotion and replenishment policies for a deteriorating item under permissible delay in payments」主題。共同形成了獨特的指紋。

引用此