Joint pricing and inventory management with deterministic demand and costly price adjustment

Xin Chen, Peng Hu

Research output: Contribution to journalArticle

Abstract

We analyze a joint inventory and pricing model of a single product over a finite planning horizon with deterministic demand. In this model, an ordering quantity and a price are decided simultaneously at the beginning of each period, demand of the period depends on the price, and a price adjustment cost is incurred if the price is changed from the previous period. We develop polynomial time algorithms to maximize the total profit and discuss their computational complexity.

Original languageEnglish (US)
Pages (from-to)385-389
Number of pages5
JournalOperations Research Letters
Volume40
Issue number5
DOIs
StatePublished - Sep 1 2012

Keywords

  • Deterministic demands
  • Joint inventory and pricing model
  • Price adjustment costs

ASJC Scopus subject areas

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

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