Joint inventory allocation and pricing decisions for perishable products
- Authors
- Chew, Ek Peng; Lee, Chulung; Liu, Rujing
- Issue Date
- 7월-2009
- Publisher
- ELSEVIER SCIENCE BV
- Keywords
- Pricing; Inventory allocation; Revenue management; Perishable products; Periodic review
- Citation
- INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, v.120, no.1, pp.139 - 150
- Indexed
- SCIE
SCOPUS
- Journal Title
- INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
- Volume
- 120
- Number
- 1
- Start Page
- 139
- End Page
- 150
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/119695
- DOI
- 10.1016/j.ijpe.2008.07.018
- ISSN
- 0925-5273
- Abstract
- We jointly determine the price and the inventory allocation for a perishable product with a predetermined lifetime. We assume that the price of the product increases as the time when it perishes approaches as in the airline industry. Demand for the product is price sensitive. To maximize the expected revenue, we developed a discrete time dynamic programming model to obtain the optimal prices and the optimal inventory allocations for the product with a two period lifetime. We, then, proposed three heuristics when the lifetime is longer than two periods. The Computational results showed that the expected revenues from the proposed heuristics were very close to that of the optimal Solution. We extended these results to (i) the case where the price for the product consistently decreases; and (ii) the case where the price for the product first increases and later decreases. (C) 2008 Elsevier B.V. All rights reserved.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - College of Engineering > School of Industrial and Management Engineering > 1. Journal Articles
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.