A Note on the Relationship Among Capacity, Pricing, and Inventory in a Make-to-Stock System

被引:16
作者
Allon, Gad [1 ]
Zeevi, Assaf [2 ]
机构
[1] Northwestern Univ, Kellogg Sch Management, Evanston, IL 60208 USA
[2] Columbia Univ, Grad Sch Business, New York, NY 10027 USA
关键词
capacity investment; pricing; inventory; stochastic demand; LIMITED PRODUCTION CAPACITY; INVESTMENT; DECISIONS; STRATEGY;
D O I
10.1111/j.1937-5956.2010.01193.x
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
We address the simultaneous determination of pricing, production, and capacity investment decisions by a monopolistic firm in a multi-period setting under demand uncertainty. We analyze the optimal decision with particular emphasis on the relationship between price and capacity. We consider models that allow for either bi-directional price changes or models with markdowns only, and in the latter case we prove that capacity and price are strategic substitutes.
引用
收藏
页码:143 / 151
页数:9
相关论文
共 24 条
[1]   Simultaneous capacity and production management of short-life-cycle, produce-to-stock goods under stochastic demand [J].
Angelus, A ;
Porteus, EL .
MANAGEMENT SCIENCE, 2002, 48 (03) :399-413
[2]   Stochastic inventory models with limited production capacity and periodically varying parameters [J].
Aviv, Y ;
Federgruen, A .
PROBABILITY IN THE ENGINEERING AND INFORMATIONAL SCIENCES, 1997, 11 (01) :107-135
[3]  
Boyaci T., 2007, OPER RES IN PRESS
[4]  
Chan L., 2004, Handbook of Quantitative Supply Chain Analysis: Modeling in the E- business Era
[5]   Coordinating inventory control and pricing strategies with random demand and fixed ordering cost: The finite horizon case [J].
Chen, X ;
Simchi-Levi, D .
OPERATIONS RESEARCH, 2004, 52 (06) :887-896
[6]   Multi-factor dynamic investment under uncertainty [J].
Eberly, JC ;
VanMieghem, JA .
JOURNAL OF ECONOMIC THEORY, 1997, 75 (02) :345-387
[7]   Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions [J].
Elmaghraby, W ;
Keskinocak, P .
MANAGEMENT SCIENCE, 2003, 49 (10) :1287-1309
[8]   AN INVENTORY MODEL WITH LIMITED PRODUCTION CAPACITY AND UNCERTAIN DEMANDS .2. THE DISCOUNTED-COST CRITERION [J].
FEDERGRUEN, A ;
ZIPKIN, P .
MATHEMATICS OF OPERATIONS RESEARCH, 1986, 11 (02) :208-215
[9]   Combined pricing and inventory control under uncertainty [J].
Federgruen, A ;
Heching, A .
OPERATIONS RESEARCH, 1999, 47 (03) :454-475
[10]  
Ferguson M., 2006, PURCHASING SPECULATI