Pricing and inventory control for a perishable product
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 538-542 |
| Journal / Publication | Manufacturing and Service Operations Management |
| Volume | 11 |
| Issue number | 3 |
| Publication status | Published - Jun 2009 |
Link(s)
Abstract
In this note, we study the concurrent determination of pricing and inventory replenishment decisions for a perishable product in an infinite horizon. Demands in consecutive periods are independent and influenced by prices charged in each period. In particular, we treat price as a decision variable to maximize the total discounted profit. We analyze the optimal solution-structure of a two-period lifetime problem and from insights gained in numerical experiments, develop a base-stock/list-price heuristic policy for products with arbitrary fixed lifetimes. Experiments show this policy to be effective. ©2009 INFORMS.
Research Area(s)
- Perishable, Pricing and inventory control
Citation Format(s)
Pricing and inventory control for a perishable product. / Li, Yanzhi; Lim, Andrew; Rodrigues, Brian.
In: Manufacturing and Service Operations Management, Vol. 11, No. 3, 06.2009, p. 538-542.
In: Manufacturing and Service Operations Management, Vol. 11, No. 3, 06.2009, p. 538-542.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
