Optimal pricing and replenishment policies when consumer demand depends on the in-store inventory level.

Steffen Jørgensen Peter M. Kort

Published in: CDC (2000)

Keyphrases

optimal pricing
inventory level
lead time
optimal policy
lost sales
total cost
expected cost
single product
dynamic pricing
production system
long run

inventory control
pricing strategies
state dependent
bullwhip effect
inventory systems
customer demand
periodic review
single stage
order quantity
stochastic process
infinite horizon

single period
production cost
revenue management
supply chain
holding cost
single item
inventory models
production rate
inventory management
finite horizon
markov decision processes

fixed cost
cost function
service level
multistage
stochastic demand
decision problems
software agents
pricing model
state space
dynamic programming