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Joint Optimal Pricing and Ordering Decisions for Seasonal Products with Weather-Sensitive Demand
Joint Authors
Dan, Bin
Sun, Xiang-Kai
Fu, Hong-Yong
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-27
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
Retailers selling seasonal products often face the challenge in matching their inventory levels with uncertain market demand which is sensitive to weather conditions, such as the average seasonal temperature.
Therefore, how to make the joint ordering and pricing decisions may help retailers to increase their profits.
In this paper, we address the joint determination of pricing and ordering decisions in a newsvendor setting, where a retailer (newsvendor) sells the seasonal products and faces demand risk due to weather uncertainty.
We show that the maximum expected profit function is continuous and concave, so the optimal solution to the retail price and order quantity exists and it is the one and only solution.
In addition, we numerically investigate the impacts of related parameters on the retailer’s expected profit and the optimal pricing and ordering decisions and illustrate some useful management insights into the economic behavior of firms.
American Psychological Association (APA)
Fu, Hong-Yong& Dan, Bin& Sun, Xiang-Kai. 2014. Joint Optimal Pricing and Ordering Decisions for Seasonal Products with Weather-Sensitive Demand. Discrete Dynamics in Nature and Society،Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-446739
Modern Language Association (MLA)
Fu, Hong-Yong…[et al.]. Joint Optimal Pricing and Ordering Decisions for Seasonal Products with Weather-Sensitive Demand. Discrete Dynamics in Nature and Society No. 2014 (2014), pp.1-8.
https://search.emarefa.net/detail/BIM-446739
American Medical Association (AMA)
Fu, Hong-Yong& Dan, Bin& Sun, Xiang-Kai. Joint Optimal Pricing and Ordering Decisions for Seasonal Products with Weather-Sensitive Demand. Discrete Dynamics in Nature and Society. 2014. Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-446739
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-446739