346
Views
14
CrossRef citations to date
0
Altmetric
Original Articles

Simulation study of the price differentiation effect in a stochastic deteriorating inventory with heterogeneous consumers – freshness sensitivity

, &
Pages 3101-3119 | Published online: 13 Jun 2011

References

  • Aliyu, MDS, and Boukas, EK, 1998. Discrete-time inventory models with deteriorating items, International Journal of Systems Science 29 (1998), pp. 1007–14.
  • Anton, JA, and Varma, GD, 2005. Storability, market structure, and demand-shift incentives, RAND Journal of Economics 36 (2005), pp. 520–43.
  • Ash, RB, 1970. Basic Probability Theory. New York, NY: John Wiley and Sons; 1970.
  • Biller, S, 2005. Chan, L. M. A., Simchi-Levi, D. and Swann, J. L. (2005), Dynamic pricing and the direct-to-customer model in the automotive industry, Electric Commerce Journal, 5, 309–30.
  • Bitran, G, Caldentey, R, and Mondschein, SV, 1998. Coordinating clearance markdown sales of seasonal products in retail chains, Operations Research 46 (1998), pp. 609–24.
  • Bitran, G, and Mondschein, SV, 1997. Periodic pricing of seasonal products in retailing, Management Science 43 (1997), pp. 64–79.
  • Bulow, J, 1982. Durable goods monopolists, Journal of Political Economy 90 (1982), pp. 314–32.
  • Chen, X, and Simchi-Levi, D, 2002. Coordinating inventory control and pricing strategies with random demand and fixed ordering cost, Working Paper. Cambridge, MA: Massachusetts Institute of Technology; 2002.
  • Chung, YD, Horng, JC, and Chao, HW, 2007. Purchase-inventory decision models for deteriorating items with a temporary sale price, International Journal on Information and Management Sciences 18 (2007), pp. 17–35.
  • Coase, R, 1972. Durability and monopoly, Journal of Law and Economics 15 (1972), pp. 143–9.
  • Dudline, P, Hendel, I, and Lizzeri, A, 2006. Storable good monopoly: the role of commitment, American Economic Review 96 (2006), pp. 1706–19.
  • Elmaghraby, W, and Keskinocak, P, 2003. Dynamic pricing in the presence of inventory considerations: research overview, current practices, and future directions, Management Science 49 (2003), pp. 1287–309.
  • Feng, Y, and Gallego, G, 1995. Optimal starting times for end of season sales and optimal stopping times for promotional fares, Management Science 41 (1995), pp. 1371–91.
  • Gallego, G, and van Ryzin, GJ, 1994. Optimal dynamic pricing of inventories with stochastic demand over finite horizon, Management Science 40 (1994), pp. 999–1020.
  • Hendel, I, and Nevo, A, 2004. Measuring the implications of sales and consumer inventory behavior. Manuscript: Northland University; 2004.
  • Kang, S, and Kim, IT, 1983. A study on the price and production level of the deteriorating inventory system, International Journal of Production Research 21 (1983), pp. 899–908.
  • Krishnamoorthy, A, and Varghese, TV, 1995. Inventory with disaster, Optimization 35 (1995), pp. 85–93.
  • Lazear, EP, 1986. Retail pricing and clearance sales, American Economy Review 76 (1986), pp. 14–32.
  • Liu, L, and Lian, Z, 1999. (s, S) continuous review models for inventory with fixed lifetimes, Operations Research 47 (1999), pp. 150–8.
  • Liu, L, and Yang, T, 1999. An (s, S) random lifetime inventory model with a positive lead time, European Journal of Operational Research 113 (1999), pp. 52–63.
  • Moorthy, KA, Narasimhulu, IR, and Basha, IR, 1992. On perishable inventory with Markov chain demand quantities, International Journal of Information Management Science 3 (1992), pp. 29–37.
  • Nahmias, S, 1982. Perishable inventory theory: a review, Operations Research 30 (1982), pp. 680–708.
  • Nandakumar, P, and Morton, TE, 1990. Near myopic heuristic for the fixed life perishability problem, Management Science 18 (1990), pp. 1490–8.
  • Pakkala, TPM, and Achary, KK, 1995. A two warehouse probabilistic order level inventory model for deteriorating items, Journal of Operational Research 86 (1995), pp. 281–91.
  • Perry, D, 1997. A double band control policy of a Brownian perishable inventory system, Probability in Engineering and Information Sciences 11 (1997), pp. 361–73.
  • Petruzzi, NC, and Dada, M, 1999. Pricing and the newsvendor problem: a review with extensions, Operations Research 47 (1999), pp. 183–94.
  • Raafat, F, 1991. Survey of literature on continuously deteriorating inventory model, Journal of Operational Society 42 (1991), pp. 27–37.
  • Rajan, A, Rakesh, R, and Steinberg, R, 1992. Dynamic pricing and ordering decisions by a monopolist, Management Science 38 (1992), pp. 240–62.
  • Ravichandran, N, 1995. Stochastic analysis of a continuous review perishable inventory system with positive leadtime and Poisson demand, European Journal of Operational Research 84 (1995), pp. 444–57.
  • Roy, T, and Chaudhuri, KS, 2007. An inventory model for a deteriorating item with price-dependent demand and special sale, International Journal of Operational Research 2 (2007), pp. 173–87.
  • Shah, NH, 1998. A discrete-time probabilistic inventory model for deteriorating items under a known price increase, International Journal of Systems Science 29 (1998), pp. 823–7.
  • Smith, LA, 1975. Simultaneous inventory and pricing decisions for perishable commodities with price fluctuation constraints, INFOR 13 (1975), pp. 82–7.
  • Smith, S, and Achabal, D, 1998. Clearance pricing and inventory policies for retail chains, Management Science 44 (1998), pp. 285–300.
  • Sobel, J, 1984. The timing of sales, Review of Economic Studies 51 (1984), pp. 353–68.
  • Southwell, M, 2002. Beyond the POS. 2002, Business Trends, July 2.
  • Waldman, M, 2003. Durable goods theory for real world markets, Journal of Economic Perspectives 17 (2003), pp. 131–54.
  • Weatherford, LR, and Bodily, SE, 1992. A taxonomy and research overview of perishable-asset revenue management: yield management, overbooking, and pricing, Operations Research 40 (1992), pp. 831–44.
  • Yang, PC, 2004. Pricing strategy for deteriorating items using quantity discount when demand is price sensitive, European Journal of Operational Research 157 (2004), pp. 389–97.
  • Zhao, W, and Zheng, Y-S, 2000. Optimal dynamic pricing for perishable assets with non-homogeneous demand, Management Science 46 (2000), pp. 375–88.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.