Coordinating inventory control and pricing strategies: The continuous review model

Xin Chen, David Simchi-Levi

Research output: Contribution to journalArticlepeer-review

Abstract

We analyze an infinite horizon, single product, continuous review model in which pricing and inventory decisions are made simultaneously and ordering cost includes a fixed cost. We show that there exists a stationary (s,S) inventory policy maximizing the expected discounted or expected average profit under general conditions.

Original languageEnglish (US)
Pages (from-to)323-332
Number of pages10
JournalOperations Research Letters
Volume34
Issue number3
DOIs
StatePublished - May 2006

Keywords

  • Continuous review
  • Fixed cost
  • Inventory
  • Pricing
  • Stochastic

ASJC Scopus subject areas

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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