doi: 10.3934/jimo.2019126

Partial myopia vs. forward-looking behaviors in a dynamic pricing and replenishment model for perishable items

1. 

School of Management, Tianjin Normal University, Tianjin 300387, China

2. 

Business School, Hunan University, Changsha, Hunan 410082, China

* Corresponding author: Guowei Zhu

Received  November 2018 Revised  July 2019 Published  October 2019

Fund Project: The first author is supported by the Tianjin Philosophy and Social Sciences Planning Year Project grant TJGLQN17-010; The second author is supported by National Natural Science Foundation of China grant 71871089

This paper studies a dynamic pricing and replenishment problem for perishable items considering the behavior of decision-maker (partially myopic or forward-looking) and the dynamic effects of cumulative sales. A dynamic optimization model is presented to maximize the total profit per unit time and solved on the basis of Pontryagin's maximum principle. The optimal pricing and replenishment strategies for partially myopic and forward-looking scenarios are obtained. By comparing the partially myopic and forward-looking strategies through numerical analysis, we find the main results: First, applying a skimming pricing strategy might be a good choice when the saturation effects are considered. Second, the decreasing rate of product sales, deterioration coefficient, and holding cost of perishable items per unit exhibit impact on the behavioral preference of decision-maker. Under certain conditions, partially myopic behavior can bring more profit than forward-looking behavior. These managerial implications provide useful guidelines for the decision-maker.

Citation: Musen Xue, Guowei Zhu. Partial myopia vs. forward-looking behaviors in a dynamic pricing and replenishment model for perishable items. Journal of Industrial & Management Optimization, doi: 10.3934/jimo.2019126
References:
[1]

N. AmroucheG. Martín-Herrán and G. Zaccour, Feedback Stackelberg equilibrium strategies when the private label competes with the national brand, Appl. Math. Model., 164 (2008), 79-95.  doi: 10.1007/s10479-008-0320-7.  Google Scholar

[2]

M. BakkerJ. Riezebos and R. H. Teunter, Review of inventory systems with deterioration since 2001, European J. Oper. Res., 221 (2012), 275-284.  doi: 10.1016/j.ejor.2012.03.004.  Google Scholar

[3]

F. M. Bass and A. V. Bultez, A note on optimal strategic pricing of technological innovations, Marketing Science, 1 (1982), 371-378.  doi: 10.1287/mksc.1.4.371.  Google Scholar

[4]

H. BenchekrounG. Martín-Herrán and S. Taboubi, Could myopic pricing be a strategic choice in marketing channels? A game theoretic analysis, J. Econom. Dynam. Control, 33 (2009), 1699-1718.  doi: 10.1016/j.jedc.2009.03.005.  Google Scholar

[5]

G. Bitran and R. Caldentey, An overview of pricing models for revenue management, Manufacturing & Service Oper. Manag., 5 (2003), 203-229.  doi: 10.1287/msom.5.3.203.16031.  Google Scholar

[6]

X. Q. CaiY. FengY. J. Li and D. Shi, Optimal pricing policy for a deteriorating product by dynamic tracking control, Internat. J. Prod. Res., 51 (2013), 2491-2504.  doi: 10.1080/00207543.2012.743688.  Google Scholar

[7]

D. ChakravartiA. Mitchell and R. Staelin, Judgment based marketing decision models: An experimental investigation of the decision calculus approach, Management Science, 25 (1979), 251-263.  doi: 10.1287/mnsc.25.3.251.  Google Scholar

[8]

H. CheK. Sudhir and P. B. Seetharaman, Bounded rationality in pricing under state-dependent demand: Do firms look ahead, and if so, how far?, J. of Marketing Research, 44 (2007), 434-449.  doi: 10.1509/jmkr.44.3.434.  Google Scholar

[9]

W. Y. K. Chiang, Supply chain dynamics and channel efficiency in durable product pricing and distribution, Manufacturing & Service Oper. Manag., 14 (2012), 327-343.  doi: 10.1287/msom.1110.0370.  Google Scholar

[10]

C. Y. Dye, Joint pricing and ordering policy for a deteriorating inventory with partial backlogging, Omega - Internat. J. Manag. Science, 35 (2007), 184-189.  doi: 10.1016/j.omega.2005.05.002.  Google Scholar

[11]

L. Feng, Dynamic pricing, quality investment, and replenishment model for perishable items, Int. Trans. Oper. Res., 26 (2019), 1558-1575.  doi: 10.1111/itor.12505.  Google Scholar

[12]

M. Ferguson and M. E. Ketzenberg, Information sharing to improve retail product freshness of perishables, Prod. and Oper. Manag., 15 (2006), 57-73.   Google Scholar

[13]

G. FibichA. Gavious and O. Lowengart, Explicit solutions of optimization models and differential games with nonsmooth (asymmetric) reference-price effects, Oper. Res., 51 (2003), 721-734.  doi: 10.1287/opre.51.5.721.16758.  Google Scholar

[14]

S. K. Goyal and B. C. Giri, Recent trends in modeling of deteriorating inventory, European J. Oper. Res., 134 (2001), 1-16.  doi: 10.1016/S0377-2217(00)00248-4.  Google Scholar

[15]

G. J. Gutierrez and X. L. He, Life-cycle channel coordination issues in launching an innovative durable product, Prod. and Oper. Manag., 20 (2011), 268-279.  doi: 10.1111/j.1937-5956.2010.01197.x.  Google Scholar

[16]

J. R. HauserD. I. Simester and B. Wernerfelt, Customer satisfaction incentives, Marketing Science, 13 (1994), 327-350.  doi: 10.1287/mksc.13.4.327.  Google Scholar

[17]

S. JørgensenS. Taboubi and G. Zaccour, Retail promotions with negative brand image effects: Is cooperation possible?, European J. Oper. Res., 150 (2003), 395-405.  doi: 10.1016/S0377-2217(02)00641-0.  Google Scholar

[18]

S. Jørgensen and G. Zaccour, Differential Games in Marketing, International Series in Quantitative Marketing, Kluwer Academic Publishers, Boston, 2004. Google Scholar

[19]

M. I. Kamien and N. L. Schwartz, Dynamic Optimization: The calculus of variations and optimal control in economics and management, Advanced Textbooks in Economics, North-Holland Publishing Co, Amsterdam, 1991.  Google Scholar

[20]

S. Kumar and S. P. Sethi, Dynamic pricing and advertising for web content providers, European J. Oper. Res., 197 (2009), 924-944.  doi: 10.1016/j.ejor.2007.12.038.  Google Scholar

[21]

S. T. Law and H. M. Wee, An integrated production-inventory model for ameliorating and deteriorating items taking account of time discounting, Math. and Comput. Modelling, 43 (2006), 673-685.  doi: 10.1016/j.mcm.2005.12.012.  Google Scholar

[22]

Y. LevinJ. Mcgill and M. Nediak, Optimal dynamic pricing of perishable items by a monopolist facing strategic consumers, Prod. and Oper. Manag., 19 (2010), 40-60.  doi: 10.1111/j.1937-5956.2009.01046.x.  Google Scholar

[23]

G. W. LiuS. P. Sethi and J. X. Zhang, Myopic vs. far-sighted behaviours in a revenue-sharing supply chain with reference quality effects, Internat. J. Prod. Res., 54 (2016), 1334-1357.  doi: 10.1080/00207543.2015.1068962.  Google Scholar

[24]

F. X. LuG. W. LiuJ. X. Zhang and W. S. Tang, Benefits of partial myopia in a durable product supply chain considering pricing and advertising, J. Oper. Res. Society, 67 (2016), 1309-1324.  doi: 10.1057/jors.2016.27.  Google Scholar

[25]

P. MahataA. Gupta and G. C. Mahata, Optimal pricing and ordering policy for an EPQ inventory system with perishable items under partial tradecredit financing, Internat. J. Oper. Res., 21 (2015), 221-251.  doi: 10.1504/IJOR.2014.064607.  Google Scholar

[26]

R. Maihami and B. Karimi, Optimizing the pricing and replenishment policy for non-instantaneous deteriorating items with stochastic demand and promotional efforts, Comput. Oper. Res., 51 (2014), 302-312.  doi: 10.1016/j.cor.2014.05.022.  Google Scholar

[27]

G. Martín-Herrán and S. Taboubi, Shelf-space allocation and advertising decisions in the marketing channel: A differential game approach, Int. Game Theory Rev., 7 (2005), 313-330.  doi: 10.1142/S0219198905000545.  Google Scholar

[28]

G. Martín-HerránS. Taboubi and G. Zaccour, Dual role of price and myopia in a marketing channel, European J. Oper. Res., 219 (2012), 284-295.  doi: 10.1016/j.ejor.2011.12.015.  Google Scholar

[29]

R. J. Meyer and J. W. Hutchinson, Bumbling geniuses: The power of everyday reasoning in multistage decision making, Wharton on Making Decisions, 2001, 37–61. Google Scholar

[30]

F. Ngendakuriyo and S. Taboubi, Pricing strategies of complementary products in distribution channels: A dynamic approach, Dyn. Games Appl., 7 (2017), 48-66.  doi: 10.1007/s13235-016-0181-7.  Google Scholar

[31]

L. Y. OuyangK. S. WuC. T. Yang and H. F. Yen, Optimal order policy in response to announced price increase for deteriorating items with limited special order quantity, Internat. J. Systems Sci., 47 (2016), 718-729.  doi: 10.1080/00207721.2014.902157.  Google Scholar

[32]

Z. Pang, Optimal dynamic pricing and inventory control with stock deterioration and partial backordering, Oper. Res. Lett., 39 (2011), 375-379.  doi: 10.1016/j.orl.2011.06.009.  Google Scholar

[33]

M. PervinG. C. Mahata and S. K. Roy, An inventory model with demand declining market for deteriorating items under trade credit policy, Internat. J. Manag. Sci. and Engineering Manag., 11 (2016), 243-251.  doi: 10.1080/17509653.2015.1081082.  Google Scholar

[34]

M. PervinS. K. Roy and G. W. Weber, Analysis of inventory control model with shortage under time-dependent demand and time-varying holding cost including stochastic deterioration, Ann. Oper. Res., 260 (2018), 437-460.  doi: 10.1007/s10479-016-2355-5.  Google Scholar

[35]

M. Pervin, S. K. Roy and G. W. Weber, Deteriorating inventory with preservation technology under price- and stock-sensitive demand, J. Ind. Manag. Optim., (2019). doi: 10.3934/jimo.2019019.  Google Scholar

[36]

M. PervinS. K. Roy and G. W. Weber, An integrated inventory model with variable holding cost under two levels of trade-credit policy, Numer. Algebra Control Optim., 8 (2018), 169-191.  doi: 10.3934/naco.2018010.  Google Scholar

[37]

M. PervinS. K. Roy and G. W. Weber, Multi-item deteriorating two-echelon inventory model with price- and stock-dependent demand: A trade-credit policy, J. Ind. Manag. Optim., 15 (2019), 1345-1373.  doi: 10.3934/jimo.2018098.  Google Scholar

[38]

M. PervinS. K. Roy and G. W. Weber, A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items, Numer. Algebra Control Optim., 7 (2017), 21-50.  doi: 10.3934/naco.2017002.  Google Scholar

[39]

I. Popescu and Y. Wu, Dynamic pricing strategies with reference effects, Oper. Res., 55 (2007), 413-429.  doi: 10.1287/opre.1070.0393.  Google Scholar

[40]

Y. QinJ. Wang and C. Wei, Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously, Internat. J. Produc. Econ., 152 (2014), 42-48.  doi: 10.1016/j.ijpe.2014.01.005.  Google Scholar

[41]

M. RabbaniN. P. Zia and H. Rafiei, Joint optimal dynamic pricing and replenishment policies for items with simultaneous quality and physical quantity deterioration, Appl. Math. Comput., 287 (2016), 149-160.  doi: 10.1016/j.amc.2016.04.016.  Google Scholar

[42]

R. C. Rao and F. M. Bass, Competition, strategy, and price dynamics: A theoretical and empirical investigation, J. Marketing Res., 22 (1985), 283-297.  doi: 10.1177/002224378502200304.  Google Scholar

[43]

S. SahaI. Nielsenb and I. Moon, Optimal retailer investments in green operations and preservation technology for deteriorating items, J. Cleaner Produc., 140 (2017), 1514-1527.  doi: 10.1016/j.jclepro.2016.09.229.  Google Scholar

[44]

N. H. ShahH. N. Soni and K. Patel, Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates, Omega - Int. J. Manag. Science, 41 (2013), 421-430.  doi: 10.1016/j.omega.2012.03.002.  Google Scholar

[45]

Y. C. Tsao and G. J. Sheen, Dynamic pricing, promotion and replenishment policies for a deteriorating item under permissible delay in payments, Comput. Oper. Res., 35 (2008), 3562-3580.  doi: 10.1016/j.cor.2007.01.024.  Google Scholar

[46]

H. M. Wee, Joint pricing and replenishment policy for deteriorating inventory with declining market, Internat. J. Produc. Econ., 40 (1995), 163-171.  doi: 10.1016/0925-5273(95)00053-3.  Google Scholar

[47]

H. M. Wee and S. T. Law, Replenishment and pricing policy for deteriorating items taking into account the time-value of money., Internat. J. Produc. Econ., 71 (2001), 213-220.  doi: 10.1016/S0925-5273(00)00121-3.  Google Scholar

[48]

H. M. WeeS. T. LoJ. Yu and H. C. Chen, An inventory model for ameliorating and deteriorating items taking account of time value of money and finite planning horizon, Internat. J. Systems Sci., 39 (2008), 801-807.  doi: 10.1080/00207720801902523.  Google Scholar

[49]

M. S. XueW. S. Tang and J. X. Zhang, Optimal dynamic pricing for deteriorating items with reference-price effects, Internat. J. Systems Sci., 47 (2016), 2022-2031.  doi: 10.1080/00207721.2014.970598.  Google Scholar

[50]

M. S. XueJ. X. ZhangW. S. Tang and R. Dai, Quality improvement and pricing with reference quality effect, J. Systems Sci. Systems Engineering, 26 (2017), 665-682.  doi: 10.1007/s11518-017-5331-y.  Google Scholar

[51]

J. X. ZhangQ. WeiQ. Zhang and W. S. Tang, Pricing, service and preservation technology investments policy for deteriorating items under common resource constraints, Computers & Industrial Engineering, 95 (2016), 1-9.  doi: 10.1016/j.cie.2016.02.014.  Google Scholar

[52]

W. Zhao and Y. S. Zheng, Optimal dynamic pricing for perishable assets with nonhomogeneous demand, Management Science, 46 (2000), 375-388.  doi: 10.1287/mnsc.46.3.375.12063.  Google Scholar

show all references

References:
[1]

N. AmroucheG. Martín-Herrán and G. Zaccour, Feedback Stackelberg equilibrium strategies when the private label competes with the national brand, Appl. Math. Model., 164 (2008), 79-95.  doi: 10.1007/s10479-008-0320-7.  Google Scholar

[2]

M. BakkerJ. Riezebos and R. H. Teunter, Review of inventory systems with deterioration since 2001, European J. Oper. Res., 221 (2012), 275-284.  doi: 10.1016/j.ejor.2012.03.004.  Google Scholar

[3]

F. M. Bass and A. V. Bultez, A note on optimal strategic pricing of technological innovations, Marketing Science, 1 (1982), 371-378.  doi: 10.1287/mksc.1.4.371.  Google Scholar

[4]

H. BenchekrounG. Martín-Herrán and S. Taboubi, Could myopic pricing be a strategic choice in marketing channels? A game theoretic analysis, J. Econom. Dynam. Control, 33 (2009), 1699-1718.  doi: 10.1016/j.jedc.2009.03.005.  Google Scholar

[5]

G. Bitran and R. Caldentey, An overview of pricing models for revenue management, Manufacturing & Service Oper. Manag., 5 (2003), 203-229.  doi: 10.1287/msom.5.3.203.16031.  Google Scholar

[6]

X. Q. CaiY. FengY. J. Li and D. Shi, Optimal pricing policy for a deteriorating product by dynamic tracking control, Internat. J. Prod. Res., 51 (2013), 2491-2504.  doi: 10.1080/00207543.2012.743688.  Google Scholar

[7]

D. ChakravartiA. Mitchell and R. Staelin, Judgment based marketing decision models: An experimental investigation of the decision calculus approach, Management Science, 25 (1979), 251-263.  doi: 10.1287/mnsc.25.3.251.  Google Scholar

[8]

H. CheK. Sudhir and P. B. Seetharaman, Bounded rationality in pricing under state-dependent demand: Do firms look ahead, and if so, how far?, J. of Marketing Research, 44 (2007), 434-449.  doi: 10.1509/jmkr.44.3.434.  Google Scholar

[9]

W. Y. K. Chiang, Supply chain dynamics and channel efficiency in durable product pricing and distribution, Manufacturing & Service Oper. Manag., 14 (2012), 327-343.  doi: 10.1287/msom.1110.0370.  Google Scholar

[10]

C. Y. Dye, Joint pricing and ordering policy for a deteriorating inventory with partial backlogging, Omega - Internat. J. Manag. Science, 35 (2007), 184-189.  doi: 10.1016/j.omega.2005.05.002.  Google Scholar

[11]

L. Feng, Dynamic pricing, quality investment, and replenishment model for perishable items, Int. Trans. Oper. Res., 26 (2019), 1558-1575.  doi: 10.1111/itor.12505.  Google Scholar

[12]

M. Ferguson and M. E. Ketzenberg, Information sharing to improve retail product freshness of perishables, Prod. and Oper. Manag., 15 (2006), 57-73.   Google Scholar

[13]

G. FibichA. Gavious and O. Lowengart, Explicit solutions of optimization models and differential games with nonsmooth (asymmetric) reference-price effects, Oper. Res., 51 (2003), 721-734.  doi: 10.1287/opre.51.5.721.16758.  Google Scholar

[14]

S. K. Goyal and B. C. Giri, Recent trends in modeling of deteriorating inventory, European J. Oper. Res., 134 (2001), 1-16.  doi: 10.1016/S0377-2217(00)00248-4.  Google Scholar

[15]

G. J. Gutierrez and X. L. He, Life-cycle channel coordination issues in launching an innovative durable product, Prod. and Oper. Manag., 20 (2011), 268-279.  doi: 10.1111/j.1937-5956.2010.01197.x.  Google Scholar

[16]

J. R. HauserD. I. Simester and B. Wernerfelt, Customer satisfaction incentives, Marketing Science, 13 (1994), 327-350.  doi: 10.1287/mksc.13.4.327.  Google Scholar

[17]

S. JørgensenS. Taboubi and G. Zaccour, Retail promotions with negative brand image effects: Is cooperation possible?, European J. Oper. Res., 150 (2003), 395-405.  doi: 10.1016/S0377-2217(02)00641-0.  Google Scholar

[18]

S. Jørgensen and G. Zaccour, Differential Games in Marketing, International Series in Quantitative Marketing, Kluwer Academic Publishers, Boston, 2004. Google Scholar

[19]

M. I. Kamien and N. L. Schwartz, Dynamic Optimization: The calculus of variations and optimal control in economics and management, Advanced Textbooks in Economics, North-Holland Publishing Co, Amsterdam, 1991.  Google Scholar

[20]

S. Kumar and S. P. Sethi, Dynamic pricing and advertising for web content providers, European J. Oper. Res., 197 (2009), 924-944.  doi: 10.1016/j.ejor.2007.12.038.  Google Scholar

[21]

S. T. Law and H. M. Wee, An integrated production-inventory model for ameliorating and deteriorating items taking account of time discounting, Math. and Comput. Modelling, 43 (2006), 673-685.  doi: 10.1016/j.mcm.2005.12.012.  Google Scholar

[22]

Y. LevinJ. Mcgill and M. Nediak, Optimal dynamic pricing of perishable items by a monopolist facing strategic consumers, Prod. and Oper. Manag., 19 (2010), 40-60.  doi: 10.1111/j.1937-5956.2009.01046.x.  Google Scholar

[23]

G. W. LiuS. P. Sethi and J. X. Zhang, Myopic vs. far-sighted behaviours in a revenue-sharing supply chain with reference quality effects, Internat. J. Prod. Res., 54 (2016), 1334-1357.  doi: 10.1080/00207543.2015.1068962.  Google Scholar

[24]

F. X. LuG. W. LiuJ. X. Zhang and W. S. Tang, Benefits of partial myopia in a durable product supply chain considering pricing and advertising, J. Oper. Res. Society, 67 (2016), 1309-1324.  doi: 10.1057/jors.2016.27.  Google Scholar

[25]

P. MahataA. Gupta and G. C. Mahata, Optimal pricing and ordering policy for an EPQ inventory system with perishable items under partial tradecredit financing, Internat. J. Oper. Res., 21 (2015), 221-251.  doi: 10.1504/IJOR.2014.064607.  Google Scholar

[26]

R. Maihami and B. Karimi, Optimizing the pricing and replenishment policy for non-instantaneous deteriorating items with stochastic demand and promotional efforts, Comput. Oper. Res., 51 (2014), 302-312.  doi: 10.1016/j.cor.2014.05.022.  Google Scholar

[27]

G. Martín-Herrán and S. Taboubi, Shelf-space allocation and advertising decisions in the marketing channel: A differential game approach, Int. Game Theory Rev., 7 (2005), 313-330.  doi: 10.1142/S0219198905000545.  Google Scholar

[28]

G. Martín-HerránS. Taboubi and G. Zaccour, Dual role of price and myopia in a marketing channel, European J. Oper. Res., 219 (2012), 284-295.  doi: 10.1016/j.ejor.2011.12.015.  Google Scholar

[29]

R. J. Meyer and J. W. Hutchinson, Bumbling geniuses: The power of everyday reasoning in multistage decision making, Wharton on Making Decisions, 2001, 37–61. Google Scholar

[30]

F. Ngendakuriyo and S. Taboubi, Pricing strategies of complementary products in distribution channels: A dynamic approach, Dyn. Games Appl., 7 (2017), 48-66.  doi: 10.1007/s13235-016-0181-7.  Google Scholar

[31]

L. Y. OuyangK. S. WuC. T. Yang and H. F. Yen, Optimal order policy in response to announced price increase for deteriorating items with limited special order quantity, Internat. J. Systems Sci., 47 (2016), 718-729.  doi: 10.1080/00207721.2014.902157.  Google Scholar

[32]

Z. Pang, Optimal dynamic pricing and inventory control with stock deterioration and partial backordering, Oper. Res. Lett., 39 (2011), 375-379.  doi: 10.1016/j.orl.2011.06.009.  Google Scholar

[33]

M. PervinG. C. Mahata and S. K. Roy, An inventory model with demand declining market for deteriorating items under trade credit policy, Internat. J. Manag. Sci. and Engineering Manag., 11 (2016), 243-251.  doi: 10.1080/17509653.2015.1081082.  Google Scholar

[34]

M. PervinS. K. Roy and G. W. Weber, Analysis of inventory control model with shortage under time-dependent demand and time-varying holding cost including stochastic deterioration, Ann. Oper. Res., 260 (2018), 437-460.  doi: 10.1007/s10479-016-2355-5.  Google Scholar

[35]

M. Pervin, S. K. Roy and G. W. Weber, Deteriorating inventory with preservation technology under price- and stock-sensitive demand, J. Ind. Manag. Optim., (2019). doi: 10.3934/jimo.2019019.  Google Scholar

[36]

M. PervinS. K. Roy and G. W. Weber, An integrated inventory model with variable holding cost under two levels of trade-credit policy, Numer. Algebra Control Optim., 8 (2018), 169-191.  doi: 10.3934/naco.2018010.  Google Scholar

[37]

M. PervinS. K. Roy and G. W. Weber, Multi-item deteriorating two-echelon inventory model with price- and stock-dependent demand: A trade-credit policy, J. Ind. Manag. Optim., 15 (2019), 1345-1373.  doi: 10.3934/jimo.2018098.  Google Scholar

[38]

M. PervinS. K. Roy and G. W. Weber, A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items, Numer. Algebra Control Optim., 7 (2017), 21-50.  doi: 10.3934/naco.2017002.  Google Scholar

[39]

I. Popescu and Y. Wu, Dynamic pricing strategies with reference effects, Oper. Res., 55 (2007), 413-429.  doi: 10.1287/opre.1070.0393.  Google Scholar

[40]

Y. QinJ. Wang and C. Wei, Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously, Internat. J. Produc. Econ., 152 (2014), 42-48.  doi: 10.1016/j.ijpe.2014.01.005.  Google Scholar

[41]

M. RabbaniN. P. Zia and H. Rafiei, Joint optimal dynamic pricing and replenishment policies for items with simultaneous quality and physical quantity deterioration, Appl. Math. Comput., 287 (2016), 149-160.  doi: 10.1016/j.amc.2016.04.016.  Google Scholar

[42]

R. C. Rao and F. M. Bass, Competition, strategy, and price dynamics: A theoretical and empirical investigation, J. Marketing Res., 22 (1985), 283-297.  doi: 10.1177/002224378502200304.  Google Scholar

[43]

S. SahaI. Nielsenb and I. Moon, Optimal retailer investments in green operations and preservation technology for deteriorating items, J. Cleaner Produc., 140 (2017), 1514-1527.  doi: 10.1016/j.jclepro.2016.09.229.  Google Scholar

[44]

N. H. ShahH. N. Soni and K. Patel, Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates, Omega - Int. J. Manag. Science, 41 (2013), 421-430.  doi: 10.1016/j.omega.2012.03.002.  Google Scholar

[45]

Y. C. Tsao and G. J. Sheen, Dynamic pricing, promotion and replenishment policies for a deteriorating item under permissible delay in payments, Comput. Oper. Res., 35 (2008), 3562-3580.  doi: 10.1016/j.cor.2007.01.024.  Google Scholar

[46]

H. M. Wee, Joint pricing and replenishment policy for deteriorating inventory with declining market, Internat. J. Produc. Econ., 40 (1995), 163-171.  doi: 10.1016/0925-5273(95)00053-3.  Google Scholar

[47]

H. M. Wee and S. T. Law, Replenishment and pricing policy for deteriorating items taking into account the time-value of money., Internat. J. Produc. Econ., 71 (2001), 213-220.  doi: 10.1016/S0925-5273(00)00121-3.  Google Scholar

[48]

H. M. WeeS. T. LoJ. Yu and H. C. Chen, An inventory model for ameliorating and deteriorating items taking account of time value of money and finite planning horizon, Internat. J. Systems Sci., 39 (2008), 801-807.  doi: 10.1080/00207720801902523.  Google Scholar

[49]

M. S. XueW. S. Tang and J. X. Zhang, Optimal dynamic pricing for deteriorating items with reference-price effects, Internat. J. Systems Sci., 47 (2016), 2022-2031.  doi: 10.1080/00207721.2014.970598.  Google Scholar

[50]

M. S. XueJ. X. ZhangW. S. Tang and R. Dai, Quality improvement and pricing with reference quality effect, J. Systems Sci. Systems Engineering, 26 (2017), 665-682.  doi: 10.1007/s11518-017-5331-y.  Google Scholar

[51]

J. X. ZhangQ. WeiQ. Zhang and W. S. Tang, Pricing, service and preservation technology investments policy for deteriorating items under common resource constraints, Computers & Industrial Engineering, 95 (2016), 1-9.  doi: 10.1016/j.cie.2016.02.014.  Google Scholar

[52]

W. Zhao and Y. S. Zheng, Optimal dynamic pricing for perishable assets with nonhomogeneous demand, Management Science, 46 (2000), 375-388.  doi: 10.1287/mnsc.46.3.375.12063.  Google Scholar

Figure 1.  The unit time total profits $ J_m(T) $ and $ J_f(T) $ versus $ T $
Figure 2.  The optimal pricing strategies $ p^*_m $ and $ p^*_f $ versus $ t $
Figure 3.  The effect of $ \delta $ on the unit time total profits $ J_m $ and $ J_f $
Figure 4.  The effect of $ \theta $ on the unit time total profits $ J_m $ and $ J_f $
[1]

Fuying Jing, Zirui Lan, Yang Pan. Forecast horizon of dynamic lot size model for perishable inventory with minimum order quantities. Journal of Industrial & Management Optimization, 2017, 13 (5) : 1-22. doi: 10.3934/jimo.2019010

[2]

Prasenjit Pramanik, Sarama Malik Das, Manas Kumar Maiti. Note on : Supply chain inventory model for deteriorating items with maximum lifetime and partial trade credit to credit risk customers. Journal of Industrial & Management Optimization, 2019, 15 (3) : 1289-1315. doi: 10.3934/jimo.2018096

[3]

Shichen Zhang, Jianxiong Zhang, Jiang Shen, Wansheng Tang. A joint dynamic pricing and production model with asymmetric reference price effect. Journal of Industrial & Management Optimization, 2019, 15 (2) : 667-688. doi: 10.3934/jimo.2018064

[4]

Maryam Ghoreishi, Abolfazl Mirzazadeh, Gerhard-Wilhelm Weber, Isa Nakhai-Kamalabadi. Joint pricing and replenishment decisions for non-instantaneous deteriorating items with partial backlogging, inflation- and selling price-dependent demand and customer returns. Journal of Industrial & Management Optimization, 2015, 11 (3) : 933-949. doi: 10.3934/jimo.2015.11.933

[5]

Mohsen Lashgari, Ata Allah Taleizadeh, Shib Sankar Sana. An inventory control problem for deteriorating items with back-ordering and financial considerations under two levels of trade credit linked to order quantity. Journal of Industrial & Management Optimization, 2016, 12 (3) : 1091-1119. doi: 10.3934/jimo.2016.12.1091

[6]

Guodong Yi, Xiaohong Chen, Chunqiao Tan. Optimal pricing of perishable products with replenishment policy in the presence of strategic consumers. Journal of Industrial & Management Optimization, 2019, 15 (4) : 1579-1597. doi: 10.3934/jimo.2018112

[7]

Honglei Xu, Peng Sui, Guanglu Zhou, Louis Caccetta. Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method. Numerical Algebra, Control & Optimization, 2013, 3 (4) : 655-664. doi: 10.3934/naco.2013.3.655

[8]

Jianxiong Zhang, Zhenyu Bai, Wansheng Tang. Optimal pricing policy for deteriorating items with preservation technology investment. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1261-1277. doi: 10.3934/jimo.2014.10.1261

[9]

Muhammad Altaf Khan, Muhammad Farhan, Saeed Islam, Ebenezer Bonyah. Modeling the transmission dynamics of avian influenza with saturation and psychological effect. Discrete & Continuous Dynamical Systems - S, 2019, 12 (3) : 455-474. doi: 10.3934/dcdss.2019030

[10]

Li Deng, Wenjie Bi, Haiying Liu, Kok Lay Teo. A multi-stage method for joint pricing and inventory model with promotion constrains. Discrete & Continuous Dynamical Systems - S, 2018, 0 (0) : 0-0. doi: 10.3934/dcdss.2020097

[11]

Magdi S. Mahmoud. Output feedback overlapping control design of interconnected systems with input saturation. Numerical Algebra, Control & Optimization, 2016, 6 (2) : 127-151. doi: 10.3934/naco.2016004

[12]

Tien-Yu Lin, Ming-Te Chen, Kuo-Lung Hou. An inventory model for items with imperfect quality and quantity discounts under adjusted screening rate and earned interest. Journal of Industrial & Management Optimization, 2016, 12 (4) : 1333-1347. doi: 10.3934/jimo.2016.12.1333

[13]

Vincent Choudri, Mathiyazhgan Venkatachalam, Sethuraman Panayappan. Production inventory model with deteriorating items, two rates of production cost and taking account of time value of money. Journal of Industrial & Management Optimization, 2016, 12 (3) : 1153-1172. doi: 10.3934/jimo.2016.12.1153

[14]

Magfura Pervin, Sankar Kumar Roy, Gerhard Wilhelm Weber. A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items. Numerical Algebra, Control & Optimization, 2017, 7 (1) : 21-50. doi: 10.3934/naco.2017002

[15]

Biswajit Sarkar, Bijoy Kumar Shaw, Taebok Kim, Mitali Sarkar, Dongmin Shin. An integrated inventory model with variable transportation cost, two-stage inspection, and defective items. Journal of Industrial & Management Optimization, 2017, 13 (4) : 1975-1990. doi: 10.3934/jimo.2017027

[16]

Sung-Seok Ko. A nonhomogeneous quasi-birth-death process approach for an $ (s, S) $ policy for a perishable inventory system with retrial demands. Journal of Industrial & Management Optimization, 2017, 13 (5) : 1-19. doi: 10.3934/jimo.2019009

[17]

Jingzhen Liu, Ka Fai Cedric Yiu, Alain Bensoussan. Ergodic control for a mean reverting inventory model. Journal of Industrial & Management Optimization, 2018, 14 (3) : 857-876. doi: 10.3934/jimo.2017079

[18]

Haiying Liu, Xinxing Luo, Wenjie Bi, Yueming Man, Kok Lay Teo. Dynamic pricing of network goods in duopoly markets with boundedly rational consumers. Journal of Industrial & Management Optimization, 2017, 13 (1) : 429-447. doi: 10.3934/jimo.2016025

[19]

Jérôme Coville. Nonlocal refuge model with a partial control. Discrete & Continuous Dynamical Systems - A, 2015, 35 (4) : 1421-1446. doi: 10.3934/dcds.2015.35.1421

[20]

Ali Naimi Sadigh, S. Kamal Chaharsooghi, Majid Sheikhmohammady. A game theoretic approach to coordination of pricing, advertising, and inventory decisions in a competitive supply chain. Journal of Industrial & Management Optimization, 2016, 12 (1) : 337-355. doi: 10.3934/jimo.2016.12.337

2018 Impact Factor: 1.025

Metrics

  • PDF downloads (13)
  • HTML views (39)
  • Cited by (0)

Other articles
by authors

[Back to Top]