Pricing and inventory control for a perishable product

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)538-542
Journal / PublicationManufacturing and Service Operations Management
Volume11
Issue number3
StatePublished - Jun 2009

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.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review