Inventory, Discounts, and the Timing Effect

被引:11
作者
Ahn, Hyun-Soo [1 ]
Gumus, Mehmet [2 ]
Kaminsky, Philip [3 ]
机构
[1] Univ Michigan, Dept Operat & Management Sci, Ross Sch Business, Ann Arbor, MI 48109 USA
[2] McGill Univ, Desautels Fac Management, Montreal, PQ H3A 1G5, Canada
[3] Univ Calif Berkeley, Dept Ind Engn & Operat Res, Berkeley, CA 94720 USA
关键词
inventory; policies; pricing; uncertainty; stochastic; FIXED ORDERING COST; PRICING STRATEGIES; RANDOM DEMAND; LOST SALES; CONSUMERS; PRICES; OPTIMALITY; DECISIONS; BEHAVIOR; POLICIES;
D O I
10.1287/msom.1080.0241
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
We introduce and analyze a model that explicitly considers the timing effect of intertemporal pricing the concept, found in practice, that demand during a sale is increasing in the time since the last sale. We present structural results that characterize the interaction between the decision to hold a sale and the inventory-ordering decision. We show that the optimal inventory-ordering policy is a state-dependent base-stock policy; however, the optimal pricing policy can be quite complicated due to both the value and the cost of holding inventory and delaying sales. In our computational analysis, we find that compared to a fixed-price policy, we see an average gain in profit of almost 5% from optimally varying promotion and inventory decisions accounting for intertemporal demand, and we find that this potential profit gain increases as demand variability decreases. We also develop a heuristic based on deterministic pricing and find that it performs well relative to the optimal policy.
引用
收藏
页码:613 / 629
页数:17
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