Joint pricing and inventory problem with price dependent stochastic demand and price discounts

Jadidi, Omid; Jaber, Mohamad Y.; Zolfaghari, Saeed

doi:10.1016/j.cie.2017.09.038

Cited by 38 publications

(18 citation statements)

References 46 publications

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“…Managerial insights are obtained from sensitivity analysis. Jadidi et al [35] addressed the optimization problem of joint pricing and inventory with price dependent stochastic demand. Two new mathematical models are formulated.…”

Section: Optimizing Inventory With Price Dependent Demandmentioning

confidence: 99%

Optimizing two multi-echelon inventory systems for perishable products with price and stock dependent demand in supply chain

Dai¹,

Gao

Zheng³

2020

Scientia Iranica

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Section: Optimizing Inventory With Price Dependent Demandmentioning

confidence: 99%

Optimizing two multi-echelon inventory systems for perishable products with price and stock dependent demand in supply chain

Dai¹,

Gao

Zheng³

2020

Scientia Iranica

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“…A decentralized supply chain is investigated in Chen and Bell [32], in this study the retailer determines the price and order quantity while facing the stochastic price-dependent demand and returns from the customer. Jadidi et al [33] considered a single period model with quantity discounts, a transportation capacity problem, and price-dependent stochastic demand. Modak and Kelle [34] examined the dual-channel supply chain considering a stochastic demand dependent on retailer price and delivery-time.…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic Pricing in a Multi-Period Newsvendor Under Stochastic Price-Dependent Demand

2019

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The faster growth of technology stipulates the rapid development of new products; with the spread of new technologies old ones are outdated and their market demand declines sharply. The combined impact of demand uncertainty and short life-cycles complicate ordering and pricing decision of retailers that leads to a decrease in the profit. This study deals with the joint inventory and dynamic pricing policy for such products considering stochastic price-dependent demand. The aim is to develop a discount policy that enables the retailer to order more at the start of the selling season thus increase the profit and market share of the retailer. A multi-period newsvendor model is developed under the distribution-free approach and the optimal stocking quantities, unit selling price, and the discount percentage are obtained. The results show that the proposed discount policy increases the expected profit of the system. Additionally, the stocking quantity and the unit selling price also increases in the proposed discount policy. The robustness of the proposed model is illustrated with numerical examples and sensitivity analysis. Managerial insights are given to extract significant insights for the newsvendor model with discount policy.

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“…In addition to the demand uncertainty, Tang, et al [29] considered the yield uncertainty and built newsvendor models to develop optimal pricing and ordering decisions to maximise the expected profit. Jadidi, et al [30] built a single-period newsvendor model, in which the buyer decides the optimal pricing and inventory decisions when encountering a dominate supplier that offers an all-unit quantity discount. Hu and Su [31] explored the best purchasing and selling decisions in the newsvendor frame, in which alternative suppliers with different price fluctuation processes are available for creating a time-flexible order.…”

Section: Joint Ordering and Pricing With The Newsvendor Modelmentioning

confidence: 99%

Decision and Performance Analysis of a Price-Setting Manufacturer with Options under a Flexible-Cap Emission Trading Scheme (ETS)

Wang

Yang

2018

Sustainability

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An Emission Trading Scheme (ETS) is widely considered to reduce carbon emissions and achieve sustainability. Unsatisfactory results of European Union Emission trading scheme (EU ETS) make China’s government propose a flexible-cap ETS system to overcome its weakness. This research is the first one introducing the flexible cap to limit the manufacturing carbon footprint. Current research on emission reduction primarily focuses on introducing option contracts to better develop the carbon market, with little consideration of the effectiveness of these contracts on the manufacturer’s optimality facing demand risks. This research fills this research gap by using call option contract to reduce the emission costs for a price-setting manufacturer under the flexible ETS. Newsvendor models are built to investigate the behaviours and performances of manufacturers, with a call option contract when the price-driven demand is uncertain. The joint emission ordering and product pricing problem is solved by three emission ordering policies: the non-option, only option, and mixed emission ordering policy. Analytical and numerical studies have shown that the mixed policy outperforms the others in profitability, and the only option policy provides more flexibility but poor profitability. Furthermore, the mixed ordering policy better protects against price volatility and stringent emission restrictions. Managerial insights help emission-dependent manufacturers to manage their carbon assets for better survival in an increasingly stringent emission market. This paper investigates the effectiveness of the option contract on manufacture optimality in the flexible-cap ETS system, in which the joint emission ordering and production pricing problem under demand uncertainty is solved by the newsvendor model.

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Joint pricing and inventory problem with price dependent stochastic demand and price discounts

Cited by 38 publications

References 46 publications

Optimizing two multi-echelon inventory systems for perishable products with price and stock dependent demand in supply chain

Optimizing two multi-echelon inventory systems for perishable products with price and stock dependent demand in supply chain

Dynamic Pricing in a Multi-Period Newsvendor Under Stochastic Price-Dependent Demand

Decision and Performance Analysis of a Price-Setting Manufacturer with Options under a Flexible-Cap Emission Trading Scheme (ETS)

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