Joint optimization of dynamic pricing and replenishment cycle considering variable non-instantaneous deterioration and stock-dependent demand

Tashakkor, Neda; Mirmohammadi, S. Hamid; Iranpoor, Mehdi

doi:10.1016/j.cie.2018.06.029

Cited by 22 publications

(9 citation statements)

References 18 publications

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“…Therefore, by considering the average profit per replenishment period, we not only compare the operational performance of the same clothing enterprise across different sales periods, but we also compare the operational performance of different enterprises in the same sales period. Similar studies are available [24][25][26][27][28].…”

Section: The Optimal Strategies Under the Dynamic Scenariomentioning

confidence: 70%

“…Herbon et al [24] formulated an inventory model with deteriorating items and price-sensitive demand and obtained the retailer's optimal dynamic selling price and the length of replenishment cycle. Tashakkor et al [25] addressed the variability of the deterioration rate in a joint dynamic pricing and replenishment cycle problem, where the deterioration rate is an increasing step function. Zhang et al [26] used Pontryagin's maximum principle to obtain both the optimal dynamic pricing strategy and the replenishment cycle for noninstantaneous deteriorating items, with demand dependent on a store's sales price and the quantity of the items displayed.…”

Section: Introductionmentioning

confidence: 99%

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Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Chen

Wang

2019

Complexity

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Fashion apparel, with short product lifecycles and highly volatile demand, requires careful attention during both the initial ordering periods before the selling season and during the selling season, with its decisions regarding price and replenishment. Using Pontryagin’s maximum principle method, this study investigates the problem of the dynamic pricing strategy and replenishment cycle for fashion apparel by considering the effect of fashion level on demand. First, we provide a framework for fashion apparel by formulating a model that includes both price and demand at different fashion levels. We then provide an algorithm to derive the optimal dynamic pricing strategy and replenishment cycle. Numerical examples and sensitivity analyses of the main system parameters are provided to demonstrate the obtained results, which form the basis for managerial insights. It is shown that the apparel retailer has three types of optimal dynamic pricing strategies and that the optimal strategy is independent of the replenishment cycle. The apparel retailer is able to realize the profit advantage of a continuously variable price policy by adjusting the sales price periodically.

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Section: The Optimal Strategies Under the Dynamic Scenariomentioning

confidence: 70%

Section: Introductionmentioning

confidence: 99%

Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Chen

Wang

2019

Complexity

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“…However, applying an aged-dependent selling price strategy may be more beneficial [53,62,63,289]. Inventory models considering a dynamic pricing policy are described in [38,53,55,62,63,65,71,91,92,94,174,178,191,233,235,247,260,283,289,293,300,325,326,330,342].…”

Section: Inventory Models Determining An Optimal Price Decisionmentioning

confidence: 99%

Inventory models for managing deteriorating products: a literature review

Pérez¹,

Torres²

2020

Preprint

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The problem of determining the economic order quantity has long attracted the attention of researchers, and several models have been developed to meet requirements under different circumstances at minimum cost. In the present paper, we conduct a structural content analysis of 317 selected peer-reviewed research articles that were published during the period 2001-2018 and ranked with a quartile score of Q1 by either ISI or Scopus database. By discussing the main topics of the inventory modeling literature, we provide a comprehensive view of the past research dealing with the management of deteriorating items. Here, we focus on items undergoing physical modification during the planning period, which encompasses a wide variety of products such as fresh produce, processed food, pharmaceuticals and blood products. Therefore, based on our holistic analysis, we identify new trends and we highlights crucial research opportunities to develop more comprehensive and practical models.

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“…Some scholars have conducted in-depth studies on the combination of the replenishment cycle and pricing. Literature [7] considers the demand dependence of nonimmediate perishable products on the price and product quality and studies the joint decision of the optimal price and replenishment cycle. Literature [8] assumes that price is a time-varying function of the discount rate and initial price, and the demand rate depends on the price and product quality.…”

Section: Introductionmentioning

confidence: 99%

Cross-Border Internet of Things E-Commerce Warehouse Control System Based on TRIZ Theory

Liu

2021

Scientific Programming

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Cross-border e-commerce of the Internet of Things is affected by international situations and political factors. Supply chain interruption and returns will cause violent fluctuations in commodity inventory, making the inventory control of cross-border e-commerce very difficult. The TRIZ principle is utilized to solve the problem of the difficulty to evaluate the suppliers comprehensively in e-commerce warehouse management. The Markov algorithm is used to describe the change of inventory level. The cyclic expected time and cost function are constructed by the horizontal crossing method, updating the process and Martingale theory. The effect of the correlation between the demand and supply interruption on the optimal inventory control strategy is studied by simulation. The change of the optimal control strategy under the different interrupt and return types is analyzed, and the validity of the management system is verified.

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Joint optimization of dynamic pricing and replenishment cycle considering variable non-instantaneous deterioration and stock-dependent demand

Cited by 22 publications

References 18 publications

Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Inventory models for managing deteriorating products: a literature review

Cross-Border Internet of Things E-Commerce Warehouse Control System Based on TRIZ Theory

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