Base stock list price policy in continuous time
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 1-28 |
| Journal / Publication | Discrete and Continuous Dynamical Systems - Series B |
| Volume | 22 |
| Issue number | 1 |
| Publication status | Published - 1 Jan 2017 |
Link(s)
Abstract
We study the problem of inventory control, with simultaneous pricing optimization in continuous time. For the classical inventory control problem in continuous time, see [5], as a recent reference. We incorporate pricing decisions together with inventory decisions. We consider the situation without fixed cost for an infinite horizon. Without pricing, under very natural assumptions, the optimal ordering policy is given by a Base stock, which we review briefly. With pricing, the natural generalization is the so called "Base Stock list price" (BSLP) term coined by E. Porteus, see [26], and was shown in discrete time by A. Federgruen and A. Herching to be the optimal strategy, see [14]. We extend the concept to continuous time which not only complicates the dynamics of the problem, which has never been considered before.
Research Area(s)
- Base stock list price, Continuous time, Quasi-variational inequalities, Stochastic dynamic programming, Stochastic inventory control
Citation Format(s)
Base stock list price policy in continuous time. / Bensoussan, Alain; Skaaning, Sonny.
In: Discrete and Continuous Dynamical Systems - Series B, Vol. 22, No. 1, 01.01.2017, p. 1-28.
In: Discrete and Continuous Dynamical Systems - Series B, Vol. 22, No. 1, 01.01.2017, p. 1-28.
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
