Continuously Increasing Price in an Inventory Cycle : An Optimal Strategy for E-Tailers
Joint Authors
Farahani, Alireza M.
Joglekar, Prafulla
Lee, Patrick
Source
Journal of Applied Mathematics and Decision Sciences
Issue
Vol. 2008, Issue 2008 (31 Dec. 2008), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2008-05-25
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Abstract EN
Operations researchers have always assumed that when a product's unit cost is constant and its demand curve is known and stationary, a retailer of the product would find it optimal to replenish the inventory with a fixed quantity and to sell the product always at a fixed price.
We present, with proof, a model that shows that, in such a case, an e-tailer is better off using a continuously increasing price strategy than using a fixed price strategy within each inventory cycle.
Sensitivity analysis shows that this strategy is particularly profitable when demand is highly price sensitive and the inventory ordering and carrying costs are high.
American Psychological Association (APA)
Joglekar, Prafulla& Lee, Patrick& Farahani, Alireza M.. 2008. Continuously Increasing Price in an Inventory Cycle : An Optimal Strategy for E-Tailers. Journal of Applied Mathematics and Decision Sciences،Vol. 2008, no. 2008, pp.1-14.
https://search.emarefa.net/detail/BIM-475185
Modern Language Association (MLA)
Joglekar, Prafulla…[et al.]. Continuously Increasing Price in an Inventory Cycle : An Optimal Strategy for E-Tailers. Journal of Applied Mathematics and Decision Sciences No. 2008 (2008), pp.1-14.
https://search.emarefa.net/detail/BIM-475185
American Medical Association (AMA)
Joglekar, Prafulla& Lee, Patrick& Farahani, Alireza M.. Continuously Increasing Price in an Inventory Cycle : An Optimal Strategy for E-Tailers. Journal of Applied Mathematics and Decision Sciences. 2008. Vol. 2008, no. 2008, pp.1-14.
https://search.emarefa.net/detail/BIM-475185
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-475185