Single Period Inventory Control and Pricing
An Empirical and Analytical Study of a Generalized Model
Abstract
The price-setting newsvendor model is used to address the single period joint pricing and inventory control problem. The objective is to set the optimal price and replenishment quantity of a single product in order to maximize the expected profit. Products with a short selling season and relatively long replenishment lead times such as fashion goods are the most relevant application areas of the model. The focus of the work is the generalization of the model with respect to the modeling of uncertainty in demand. The author presents an analytical and empirical study which compares different demand models with a more flexible model based on price and inventory optimization. She concludes that using a general model can increase the profits significantly.
Keywords
Analytical; Arikan; Control; Empirical; Generalized; Inventory; Lagerhaltungsmodell; Model; Nachfrageverhalten; Optimierung; Period; Preispolitik; Pricing; Single; StudyDOI
10.3726/b13914ISBN
9783631753941OCN
1082972256Publisher website
https://www.peterlang.com/Publication date and place
Bern, 2018Series
Forschungsergebnisse der Wirtschaftsuniversitaet Wien, 43Classification
Monetary economics