Simple heuristics for the joint inventory and pricing models with fixed replenishment costs
Küçük Resim Yok
Tarih
2024
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Taylor & Francis Ltd
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This study considers the joint inventory and pricing problem of a firm selling a single item over a multi-period planning horizon. A fixed replenishment cost is incurred whenever the replenishment decision is made. Period demands are considered to be non-stationary, stochastic, and price-dependent. The literature shows that the optimal policy in such a system is of an (s, S, p)-type. The implementation of this type of policy might be challenging in practice due to the prevailing computational difficulty in determining the optimal policy parameters. This study, therefore, aims to develop computationally efficient heuristic approaches for the joint inventory and pricing problem. The proposed heuristics provide different levels of flexibility in making inventory and pricing decisions. Furthermore, they are essentially built on the concept of the replenishment cycle and do not require solving a stochastic dynamic program. Our numerical study demonstrates the profit efficiency of the proposed heuristic approaches against the optimal policy. The results also indicate that firms lacking the technical ability to employ a dynamic pricing strategy might still gain significant profit improvement by only using a dynamic inventory control policy.
Açıklama
Anahtar Kelimeler
Heuristics, joint inventory control and pricing, price-dependent stochastic demand, (s, S, p) policy, inventory
Kaynak
Journal of the Operational Research Society
WoS Q Değeri
N/A
Scopus Q Değeri
Q1
