Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level
Joint Authors
Source
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-02-17
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
Fashion apparel, with short product lifecycles and highly volatile demand, requires careful attention during both the initial ordering periods before the selling season and during the selling season, with its decisions regarding price and replenishment.
Using Pontryagin’s maximum principle method, this study investigates the problem of the dynamic pricing strategy and replenishment cycle for fashion apparel by considering the effect of fashion level on demand.
First, we provide a framework for fashion apparel by formulating a model that includes both price and demand at different fashion levels.
We then provide an algorithm to derive the optimal dynamic pricing strategy and replenishment cycle.
Numerical examples and sensitivity analyses of the main system parameters are provided to demonstrate the obtained results, which form the basis for managerial insights.
It is shown that the apparel retailer has three types of optimal dynamic pricing strategies and that the optimal strategy is independent of the replenishment cycle.
The apparel retailer is able to realize the profit advantage of a continuously variable price policy by adjusting the sales price periodically.
American Psychological Association (APA)
Chen, Qi& Xu, Qi& Wang, Wenjie. 2019. Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level. Complexity،Vol. 2019, no. 2019, pp.1-12.
https://search.emarefa.net/detail/BIM-1133172
Modern Language Association (MLA)
Chen, Qi…[et al.]. Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level. Complexity No. 2019 (2019), pp.1-12.
https://search.emarefa.net/detail/BIM-1133172
American Medical Association (AMA)
Chen, Qi& Xu, Qi& Wang, Wenjie. Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level. Complexity. 2019. Vol. 2019, no. 2019, pp.1-12.
https://search.emarefa.net/detail/BIM-1133172
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1133172