Clearance Pricing in Retail Chains

Stephen A. Smith ()
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Stephen A. Smith: Santa Clara University

Chapter Chapter 14 in Retail Supply Chain Management, 2015, pp 387-408 from Springer

Abstract: Abstract Clearance pricing and end of season inventory management are challenging and important problems in retailing. Sales rates depend upon price, seasonal effects and the remaining assortment of items available to customers. There is little time to react to observed sales, and pricing errors result in either loss of potential revenue or excess inventory to be liquidated. This chapter develops optimal clearance prices and inventory management policies that take into account the impact of reduced assortment and seasonal changes on sales rates. Versions of these policies have been implemented and tested at a number of major retail chains and these results are summarized and discussed.

Keywords: Clearance pricing; Dynamic pricing; Price optimization; Inventory dependent demand (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-1-4899-7562-1_14

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DOI: 10.1007/978-1-4899-7562-1_14

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