Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Zhang, Jianxiong; Wang, Yu; Lu, Lihao; Tang, Wansheng

doi:10.1016/j.ijpe.2015.09.016

Cited by 61 publications

(31 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Zhang et al [27] compared the optimal strategies and profits for the supply chain with a time-varying reference price effect in distinct distribution channels. Shah et al [28] constructed a Stackelberg game model with price markdown choice in a two-echelon supply chain.…”

Section: Dynamic Pricing Strategymentioning

confidence: 99%

See 1 more Smart Citation

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

et al. 2018

View full text Add to dashboard Cite

Abstract:Remanufacturing of returned products has been increasingly recognized in industries as an effective approach to face environmental responsibility, government regulations, and increased awareness of consumers. In this paper, we address a closed-loop supply chain (CLSC) in which the manufacturer produces the brand-new products, as well as the remanufactured goods while the retailer sells these products to customers. We consider several different scenarios: the manufacturer and the retailer adopt a steady-state price or a dynamic price with reference quality effects in a centralized case; either, neither or both the manufacturer and the retailer price dynamically with reference quality effects, respectively, in a decentralized model. We solve the problem with the retailer recycling the sold copies and deduce the optimal pricing strategies while the manufacturer in charge of recovering the used items in such a CLSC. The result shows that dynamic pricing strategies are much more profitable for the supply chain and its members when compared with pricing statically; the dynamic pricing strategies with time-varying quality characterized by reference quality are more suited to a long-term and cooperative closed-loop supply chain. Moreover, the optimal recycling fraction relies on the recovery cost coefficient and proves to be uniform despite adopting a dynamic price and quality in all distinct cases.

show abstract

Section: Dynamic Pricing Strategymentioning

confidence: 99%

“…As such, solving the derivatives of R(t), that is dR(t)/dt or • R(t), we employ an exponential smoothing process of this historical quality to characterize the dynamics of reference quality, as follows, which is seen in research [16,27,45].…”

Section: Model Settingmentioning

confidence: 99%

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

et al. 2018

View full text Add to dashboard Cite

show abstract

“…The assumption of the traditional EOQ model has been relaxed from "sales prices are a given constant (fixed demand rate)" to "sales prices are a decision variable for dealers" [25,38,50,[57][58][59][60][61][62][63][64][65][66][67][68][69][70][71][72][73].…”

Section: Introductionmentioning

confidence: 99%

“…Most research on pricing problems has concentrated on discount optimization; only a few scholars have specifically studied dynamic price optimization, and most of which studies have been conducted in the past 5-6 years [25,38,[67][68][69][70][71][72][73]. In this study, goods dealers were assumed to possess the opportunity and capability to determine sales prices at each point in time (sales prices are the decision variable for goods dealers).…”

Section: Introductionmentioning

confidence: 99%

Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time

Chen

2017

Journal of Food Quality

View full text Add to dashboard Cite

Although the safe consumption of goods such as food products, medicine, and vaccines is related to their freshness, consumers frequently understand less than suppliers about the freshness of goods when they purchase them. Because of this lack of information, apart from sales prices, consumers refer only to the manufacturing and expiration dates when deciding whether to purchase and how many of these goods to buy. If dealers could determine the sales price at each point in time and customers' intention to buy goods of varying freshness, then dealers could set an optimal inventory cycle and allocate a weekly sales price for each point in time, thereby maximizing the profit per unit time. Therefore, in this study, an economic order quality model was established to enable discussion of the optimal control of sales prices. The technique for identifying the optimal solution for the model was determined, the characteristics of the optimal solution were demonstrated, and the implications of the solution's sensitivity analysis were explained.

show abstract

“…A commodity demand function is an econometric model showing the relationship between the demand volume factors and the supply volume factors (Zhang, Wang and Lu, 2015;Atar and Reiman, 2012). It adopts the commodity demand as the dependent variable, and various factors influencing the demand quantity, such as income, price and price of other commodities as the independent variables.…”

Section: Introductionmentioning

confidence: 99%

Commodity Dynamic Pricing and Inventory Joint Decision-Making Model Based on Specific Power Demand Function

2016

Rev. Téc. Ing. Univ. Zulia

View full text Add to dashboard Cite

Dynamic pricing and inventory play a respective role. The purpose of inventory is to try best to maintain an even production speed and efficiently ease supply-and-demand contradiction during the production process and among enterprises in the supply chain. However, dynamic pricing aims at maximizing revenues by setting commodities or services at different price levels according to diversified demands of consumers and different commodity or service price evaluation by consumers in different periods. Therefore, it is important for enterprises to optimize their dynamic pricing strategies and commodity inventory so as to maximize value of researches. However, demands for tangible commodities are uncertain. Generally speaking, the commodity demand volume should first be confirmed before any specific analysis. Therefore, this paper focuses on introducing the commodity demand function and relevant factors influencing the commodity demand volume. The utility function describing consumers' demands for a single commodity is analyzed. The specific power demand function model based on utility maximization is built through the utility function. At last, we conduct an in-depth analysis and simulation of the model.

show abstract

Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Cited by 61 publications

References 31 publications

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time

Commodity Dynamic Pricing and Inventory Joint Decision-Making Model Based on Specific Power Demand Function

Contact Info

Product

Resources

About