Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand

Name: Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand
Author: Akan, M., Albey, Erinç, Güler, M. G.

İsim	Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand
Yazar	Akan, M., Albey, Erinç, Güler, M. G.
Basım Tarihi:	2021-04
Basım Yeri	- Elsevier
Konu	Pricing, Inventory management, Optimal control, Time-dependent interest rate, Fashion products
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0360-8352
Kayıt Numarası	44f1b429-2ef9-4499-b8d6-297b7ff43238
Lokasyon	Industrial Engineering
Tarih	2021-04
Örnek Metin	In this work we consider the dynamic pricing problem of a retailer operating in a market with a single fashion item and under time-dependent interest rate. The demand is assumed to be deterministic and dependent on the price and decay with time, i.e., the market shrinks throughout the horizon. Using an optimal-control-theoretic approach, we analytically derive the optimal pricing and inventory strategy for the retailer over a finite horizon setting. We further analyze the ramifications of the optimal pricing decision for different initial inventory levels dictated by the relationship between the supplier and the retailer; and for varying market interest rates. Optimal dynamic pricing policy is a continuous function, which is almost impossible to use in practice. This is handled using approximate piece-wise constant pricing policies. The trade-off between dynamic pricing policy and approximate policies is also investigated.
DOI	10.1016/j.cie.2021.107149
Cilt	154

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Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand

Yazar Akan, M., Albey, Erinç, Güler, M. G.

Basım Tarihi 2021-04

Basım Yeri - Elsevier

Konu Pricing, Inventory management, Optimal control, Time-dependent interest rate, Fashion products

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0360-8352

Kayıt Numarası 44f1b429-2ef9-4499-b8d6-297b7ff43238

Lokasyon Industrial Engineering

Tarih 2021-04

Örnek Metin In this work we consider the dynamic pricing problem of a retailer operating in a market with a single fashion item and under time-dependent interest rate. The demand is assumed to be deterministic and dependent on the price and decay with time, i.e., the market shrinks throughout the horizon. Using an optimal-control-theoretic approach, we analytically derive the optimal pricing and inventory strategy for the retailer over a finite horizon setting. We further analyze the ramifications of the optimal pricing decision for different initial inventory levels dictated by the relationship between the supplier and the retailer; and for varying market interest rates. Optimal dynamic pricing policy is a continuous function, which is almost impossible to use in practice. This is handled using approximate piece-wise constant pricing policies. The trade-off between dynamic pricing policy and approximate policies is also investigated.

DOI 10.1016/j.cie.2021.107149

Cilt 154