On the Benefit of Inventory-Based Dynamic Pricing Strategies
dc.contributor.author | Chen, Hong | en_US |
dc.contributor.author | Wu, Owen Q. | en_US |
dc.contributor.author | Yao, David D. | en_US |
dc.date.accessioned | 2011-01-13T19:52:17Z | |
dc.date.available | 2011-01-13T19:52:17Z | |
dc.date.issued | 2010-05 | en_US |
dc.identifier.citation | Chen, Hong; Wu, Owen Q.; Yao, David D.; (2010). "On the Benefit of Inventory-Based Dynamic Pricing Strategies." Production and Operations Management 19(3): 249-260. <http://hdl.handle.net/2027.42/78685> | en_US |
dc.identifier.issn | 1059-1478 | en_US |
dc.identifier.issn | 1937-5956 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/78685 | |
dc.description.abstract | We study the optimal pricing and replenishment decisions in an inventory system with a price-sensitive demand, focusing on the benefit of the inventory-based dynamic pricing strategy. We find that demand variability impacts the benefit of dynamic pricing not only through the magnitude of the variability but also through its functional form (e.g., whether it is additive, multiplicative, or others). We provide an approach to quantify the profit improvement of dynamic pricing over static pricing without having to solve the dynamic pricing problem. We also demonstrate that dynamic pricing is most effective when it is jointly optimized with inventory replenishment decisions, and that its advantage can be mostly realized by using one or two price changes over a replenishment cycle. | en_US |
dc.format.extent | 354822 bytes | |
dc.format.extent | 3106 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.publisher | Blackwell Publishing Inc | en_US |
dc.subject.other | Joint Inventory and Pricing Decisions | en_US |
dc.subject.other | Demand Variability | en_US |
dc.subject.other | Dynamic Pricing | en_US |
dc.subject.other | Brownian Demand Model | en_US |
dc.title | On the Benefit of Inventory-Based Dynamic Pricing Strategies | en_US |
dc.type | Article | en_US |
dc.rights.robots | IndexNoFollow | en_US |
dc.subject.hlbsecondlevel | Industrial and Operations Engineering | en_US |
dc.subject.hlbtoplevel | Engineering | en_US |
dc.description.peerreviewed | Peer Reviewed | en_US |
dc.contributor.affiliationum | Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109, owenwu@bus.umich.edu | en_US |
dc.contributor.affiliationother | Sauder School of Business, University of British Columbia, Vancouver, British Columbia, Canada V6T 1Z2, China Europe International Business School, Pudong, Shanghai 201206, China, hong.chen@sauder.ubc.ca | en_US |
dc.contributor.affiliationother | Department of Industrial Engineering and Operations Research, Columbia University, New York, New York 10027, yao@ieor.columbia.edu | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/78685/1/j.1937-5956.2009.01099.x.pdf | |
dc.identifier.doi | 10.1111/j.1937-5956.2009.01099.x | en_US |
dc.identifier.source | Production and Operations Management | en_US |
dc.owningcollname | Interdisciplinary and Peer-Reviewed |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.