Coordinating inventory control and pricing strategies: The continuous review model

Xin Chen; David Simchi-Levi

doi:10.1016/j.orl.2005.04.012

Coordinating inventory control and pricing strategies: The continuous review model

Xin Chen, David Simchi-Levi

Research output: Contribution to journal › Article › peer-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 language	English (US)
Pages (from-to)	323-332
Number of pages	10
Journal	Operations Research Letters
Volume	34
Issue number	3
DOIs	https://doi.org/10.1016/j.orl.2005.04.012
State	Published - 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

Online availability

10.1016/j.orl.2005.04.012

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title = "Coordinating inventory control and pricing strategies: The continuous review model",

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.",

keywords = "Continuous review, Fixed cost, Inventory, Pricing, Stochastic",

author = "Xin Chen and David Simchi-Levi",

note = "Funding Information: Research supported in part by the Singapore-MIT Alliance, ONR Contracts N00014-95-1-0232 and N00014-01-1-0146, and by NSF Contracts DMI-9732795, DMI-0085683 and DMI-0245352. The authors would like to thank X. L. Chao and S. X. Zhou for providing their code which we modified for the purpose of our numerical study. We also thank the referee for insightful suggestions to improve the paper. Copyright: Copyright 2008 Elsevier B.V., All rights reserved.",

year = "2006",

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doi = "10.1016/j.orl.2005.04.012",

language = "English (US)",

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AU - Simchi-Levi, David

N1 - Funding Information: Research supported in part by the Singapore-MIT Alliance, ONR Contracts N00014-95-1-0232 and N00014-01-1-0146, and by NSF Contracts DMI-9732795, DMI-0085683 and DMI-0245352. The authors would like to thank X. L. Chao and S. X. Zhou for providing their code which we modified for the purpose of our numerical study. We also thank the referee for insightful suggestions to improve the paper. Copyright: Copyright 2008 Elsevier B.V., All rights reserved.

PY - 2006/5

Y1 - 2006/5

N2 - 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.

AB - 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.

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KW - Fixed cost

KW - Inventory

KW - Pricing

KW - Stochastic

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Coordinating inventory control and pricing strategies: The continuous review model

Abstract

Keywords

ASJC Scopus subject areas

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