Dynamic pricing policies for an inventory model with random windows of opportunities
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In this article, the authors consider a single-product fluid-inventory model in which the procurement price of the product fluctuates according to a continuous time Markov chain and derive the associated steady-state distributions and cost functionals.Abstract:
We study a single-product fluid-inventory model in which the procurement price of the product fluctuates according to a continuous time Markov chain. We assume that a fixed order price, in addition to state-dependent holding costs are incurred, and that the depletion rate of inventory is determined by the sell price of the product. Hence, at any time the controller has to simultaneously decide on the selling price of the product and whether to order or not, taking into account the current procurement price and the inventory level. In particular, the controller is faced with the question of how to best exploit the random time windows in which the procurement price is low. We consider two policies, derive the associated steady-state distributions and cost functionals, and apply those cost functionals to study the two policies.© 2017 Wiley Periodicals, Inc. Naval Research Logistics, 2017read more
Citations
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Queuing-Inventory Models with MAP Demands and Random Replenishment Opportunities
TL;DR: This paper looks at opportunistic-type inventory replenishment in which there is an independent point process that is used to model events that are called opportunistic for replenishing inventory.
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Constant Approximation for Network Revenue Management with Markovian-Correlated Customer Arrivals
TL;DR: In this article , the authors proposed a new model for correlated customer arrivals in the NRM problem and derived a new linear programming (LP) approximation of the optimal policy for solving the problem under this model.
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An optimal ordering inventory policy when the purchase price follows a discrete-time Markov chain
Suresha Kharvi,Timo Pakkala +1 more
TL;DR: In this paper , the renewal reward theorem is used to derive the expected profit per unit of time for a retailer when the discount price arrives randomly and the time variable is discrete, and the optimal inventory policy can be obtained by considering the variations in the purchase price as a discrete-time Markov chain.
References
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OPTIMALITY OF STATE‐DEPENDENT (s, S) POLICIES IN INVENTORY MODELS WITH MARKOV‐MODULATED DEMAND AND LOST SALES
Feng Cheng,Suresh Sethi +1 more
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