Ordering and pricing policies for random discount offerings and permissible shortages

F.J. Arcelus, T.P.M. Pakkala and G. Srinivasan

International Journal of Operational Research, 2007, vol. 2, issue 4, 400-413

Abstract: This study develops the ordering and pricing policies of a retailer, confronted with a price-dependent demand and a vendor offering a discount on the wholesale/regular price during sales sub-periods, which are repeated randomly and last for a random amount of time. The inventory level forms a regenerative stochastic process, with regeneration points at the start of the discount sub-periods. The objective is to maximise the long run expected profit per unit time, expressed as a function the order quantity, reorder level and retail price for regular and discount sub-periods.

Keywords: repetitive special sales; stochastic inventory; renewal reward theorem; ordering policies; pricing policies; random discount offerings; permissible shortages; operational research; order quantity; reorder level; retail price. (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=14170 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:2:y:2007:i:4:p:400-413

Access Statistics for this article

More articles in International Journal of Operational Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().