Optimal Ordering Strategy for Goods at Multiple Retail Prices under Simultaneous Sales
Joint Authors
Zhou, Gengui
Meng, Zhiqing
Mu, Yunzhi
Xu, Leiyan
Zheng, Minchao
Shen, Rui
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-07-18
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Abstract EN
To stimulate purchases from consumers, retailers nowadays use the multiple retail prices strategy (MRPS), i.e., selling the products at multiple prices simultaneously.
The paper extends the current newsboy model and proposes an optimal ordering model for MRPS corresponding to uncertain consumer demands.
The Lagrangian multiplier method is applied to solve the problem, and an algorithm for finding the approximate optimal total order quantity is designed.
Numerical results show that MRPS is better than the single retail price strategy (SRPS).
It further reveals that when there is an order quantity constraint, the retailer needs to control the number of retail prices; that is, retailer’s MRPS is affected by order quantity constraint; sensitivity analysis demonstrates that MRPS is also affected by the price discount coefficient in the case of no order quantity constraint while it is not affected by demand volatility.
The research work provides some useful managerial inspirations for retailers.
American Psychological Association (APA)
Mu, Yunzhi& Meng, Zhiqing& Shen, Rui& Zhou, Gengui& Xu, Leiyan& Zheng, Minchao. 2019. Optimal Ordering Strategy for Goods at Multiple Retail Prices under Simultaneous Sales. Discrete Dynamics in Nature and Society،Vol. 2019, no. 2019, pp.1-14.
https://search.emarefa.net/detail/BIM-1146694
Modern Language Association (MLA)
Mu, Yunzhi…[et al.]. Optimal Ordering Strategy for Goods at Multiple Retail Prices under Simultaneous Sales. Discrete Dynamics in Nature and Society No. 2019 (2019), pp.1-14.
https://search.emarefa.net/detail/BIM-1146694
American Medical Association (AMA)
Mu, Yunzhi& Meng, Zhiqing& Shen, Rui& Zhou, Gengui& Xu, Leiyan& Zheng, Minchao. Optimal Ordering Strategy for Goods at Multiple Retail Prices under Simultaneous Sales. Discrete Dynamics in Nature and Society. 2019. Vol. 2019, no. 2019, pp.1-14.
https://search.emarefa.net/detail/BIM-1146694
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1146694