Inventory rationing and markdown strategy in the presence of lead-time sensitive customers

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

3 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)525-531
Journal / PublicationOperations Research Letters
Volume44
Issue number4
Online published4 Jun 2016
Publication statusPublished - Jul 2016

Abstract

Appropriate customer segmentation, together with tailor-made strategies which dynamically change prices for customers, helps firms allocate resources more effectively. We incorporate markdown tools into the inventory-rationing model with customers segmented by lead-time sensitivity. We characterize the threshold-type optimal commitment policies and propose an efficient algorithm to compute the thresholds.

Research Area(s)

  • Dynamic programming, Inventory control, Lead-time sensitive customers, Markdown strategy

Citation Format(s)

Inventory rationing and markdown strategy in the presence of lead-time sensitive customers. / Xie, Yangyang; Liang, Xiaoying; Ma, Lijun et al.
In: Operations Research Letters, Vol. 44, No. 4, 07.2016, p. 525-531.

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review