A newsvendor problem with markup pricing in the presence of within-period price fluctuations

Name: A newsvendor problem with markup pricing in the presence of within-period price fluctuations
Author: Canyakmaz, Caner, Özekici, S., Karaesmen, F.

İsim	A newsvendor problem with markup pricing in the presence of within-period price fluctuations
Yazar	Canyakmaz, Caner, Özekici, S., Karaesmen, F.
Basım Tarihi:	2022-08-16
Basım Yeri	- Elsevier
Konu	Inventory, Markup pricing, Stochastic processes
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0377-2217
Kayıt Numarası	a49bfaae-c42c-4142-ba8a-bc6429b3dbab
Lokasyon	Business Administration
Tarih	2022-08-16
Örnek Metin	We consider a single-item single-period joint inventory management and pricing problem of a retailer selling an item that has selling price uncertainties. Unlike most of the literature on the newsvendor problem, we assume that price-dependent demand arrives randomly according to a stochastic arrival process whose rate depends on the fluctuating market input price process. The retailer's problem is to choose the order quantity and a proportional price markup over the input price to maximize the expected profit. This setting is mostly encountered by retailers that trade in different currencies or have to purchase and convert commodities for seasonal sales. For this setting, we characterize both the optimal inventory and markup levels. We present monotonicity properties of the expected profit function with respect to each decision variable. We also show that more volatile input price processes lead to lower expected profits.
DOI	10.1016/j.ejor.2021.09.042
Cilt	301

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A newsvendor problem with markup pricing in the presence of within-period price fluctuations

Yazar Canyakmaz, Caner, Özekici, S., Karaesmen, F.

Basım Tarihi 2022-08-16

Basım Yeri - Elsevier

Konu Inventory, Markup pricing, Stochastic processes

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0377-2217

Kayıt Numarası a49bfaae-c42c-4142-ba8a-bc6429b3dbab

Lokasyon Business Administration

Tarih 2022-08-16

Örnek Metin We consider a single-item single-period joint inventory management and pricing problem of a retailer selling an item that has selling price uncertainties. Unlike most of the literature on the newsvendor problem, we assume that price-dependent demand arrives randomly according to a stochastic arrival process whose rate depends on the fluctuating market input price process. The retailer's problem is to choose the order quantity and a proportional price markup over the input price to maximize the expected profit. This setting is mostly encountered by retailers that trade in different currencies or have to purchase and convert commodities for seasonal sales. For this setting, we characterize both the optimal inventory and markup levels. We present monotonicity properties of the expected profit function with respect to each decision variable. We also show that more volatile input price processes lead to lower expected profits.

DOI 10.1016/j.ejor.2021.09.042

Cilt 301