Journal ArticleDOI
Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions
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In this paper, a review of the literature and current practices in dynamic pricing is presented, where the focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.Abstract:
The benefits of dynamic pricing methods have long been known in industries, such as airlines, hotels, and electric utilities, where the capacity is fixed in the short-term and perishable. In recent years, there has been an increasing adoption of dynamic pricing policies in retail and other industries, where the sellers have the ability to store inventory. Three factors contributed to this phenomenon: (1) the increased availability of demand data, (2) the ease of changing prices due to new technologies, and (3) the availability of decision-support tools for analyzing demand data and for dynamic pricing. This paper constitutes a review of the literature and current practices in dynamic pricing. Given its applicability in most markets and its increasing adoption in practice, our focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.read more
Citations
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Journal ArticleDOI
Dynamic pricing for deteriorating products with menu cost
TL;DR: In this paper, the authors investigate the impact of menu costs on dynamic pricing decisions, and conduct several numerical experiments based on different menu costs, decay rates, holding costs and initial inventories.
Journal ArticleDOI
Efficient inventory control for imperfect quality items
TL;DR: A rigorous methodology is utilised to show that the solution is a unique and global optimal and a general step-by-step solution procedure is presented for continuous intra-cycle periodic review applications.
Journal ArticleDOI
Dynamic pricing of substitutable products with limited inventories under logit demand
Minsuk Suh,Goker Aydin +1 more
TL;DR: In this article, the authors considered the dynamic pricing of two substitutable products over a predetermined, finite selling season, where the initial inventory levels of the products are fixed exogenously and there are no replenishment opportunities during the season.
Journal ArticleDOI
The profit-maximization model for a multi-item distribution channel
Jen Ming Chen,Tsung Hui Chen +1 more
TL;DR: Four profit-maximization models are formulated by considering the effects of channel coordination and a joint replenishment program on the supply-side cost control, taking into account the effect of the pricing scheme on demand and revenue increments.
Journal ArticleDOI
The impact of dynamic pricing on the economic order decision
Sandra Transchel,Stefan Minner +1 more
TL;DR: Numerical examples show that the benefits of dynamic pricing in an EOQ framework can be achieved with only a few price changes and that products being unprofitable under static pricing may become profitable under dynamic pricing.
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