A comparative analysis of approaches for determining optimal price and order quantity when a sale increases demand

Article Abstract:

The differences between the average cost/profit and present value of cost/profit were explored to demonstrate how both measures result in dissimilar price and inventory policies when a sale raises product demand. Specifically, the problem of finding optimal price and order quantity policies for different supplier's sale period and retailer's replenishment time was solved using the two approaches. A comparison of the results reveals that it is better to use the present value method under sale conditions.

Operations research, Management science, Stockroom keeping, Stockrooms

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Economic replenishment strategies for announced price increases

Article Abstract:

Optimal deterministic replenishment strategies for independent demand items subjected to permanent price increases are proposed. A composite EOQ model which can be disaggregated into various models that can be applied to several operational schemes is used. The model allows for more diversity and can decompose complexity. Its resultant economies provide various decision support alternatives.

Economic lot size

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Optimal dynamic pricing of perishable products with stochastic demand and a finite set of prices

Article Abstract:

Issues are presented concerning the pricing of perishable goods which must be sold within a set period of time. The decline of optimal price as the final sale date approaches is discussed.

Evaluation, Dynamic programming, Yield-line analysis, Yield line analysis

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