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
Optimal production and pricing policies in a combined make-to-order/make-to-stock system
Xu Chen,Allen H. Tai,Yi Yang +2 more
TL;DR: In this article, the authors consider a production system which is capable of producing two types of products, one is make-to-order and the other one is stock to stock whose demand is satisfied by the on-hand inventory.
Journal ArticleDOI
An encompassing view on markdown pricing strategies: an analysis of the Austrian mobile phone market
Gerald Reiner,Martin Natter +1 more
TL;DR: A new model for the analysis of the effects of alternative (markdown) pricing strategies is investigated and indicates that a reduction of the currently practiced markdown strategy would reduce the provider’s overall profit for contract customers and the results for prepaid customers could be improved by a careful reduction of markdowns.
Optimal Pricing and Replenishment in a Single-Product Inventory System
TL;DR: In this paper, the optimal pricing and inventory replenishment decisions under both long-run average and discounted objectives were derived, and related to or contrasted against previously known results, and the interplay between the pricing and the replenishment decision was brought out, showing that the joint optimization of both decisions may result in significant profit improvement over the traditional way of making the decisions separately or sequentially.
Journal ArticleDOI
Joint optimization of dynamic pricing and replenishment cycle considering variable non-instantaneous deterioration and stock-dependent demand
TL;DR: In this paper, an optimal control approach is taken to find optimal dynamic prices and replenishment cycle simultaneously with the aim of maximizing the total profit of a non-instantaneous deteriorating item.
Journal ArticleDOI
Dynamic pricing model with logarithmic demand
TL;DR: In this article, a dynamic pricing model for the product having logarithmic decline price sensitive demand was developed and a solution procedure was presented to determine the optimal number of price settings and respective selling price.
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Auctions and Bidding
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TL;DR: Hayek as mentioned in this paper argued that the problem of rational economic order is determined by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess.
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Edward J. Green,Robert H. Porter +1 more
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