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Combined Sales Effort and Inventory Control under Demand Uncertainty
Joint Authors
Xue, Weili
Wang, Ruxian
Xu, Xiaolin
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-02-20
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
We study the joint inventory and sales effort management problems of a retailer in a broad context and investigate the optimal policies for a single item, periodic-review system.
In each period, the demand is uncertain depending on the sales effort level exerted by the retailer, which incurs an associated cost.
The retailer’s objective is to find a joint optimal inventory replenishment and sales effort policy to maximize the discounted profit over a finite horizon.
We first consider a basic setting with zero setup cost and no batch ordering, under which the base stock list sales effort policy is optimal.
Two extensions are then investigated: (1) the case with nonzero setup cost, under which we show that (s,S,e) policy is optimal; and (2) the case with batch ordering, under which we prove the optimality of the (r,Nq,e) policy.
Finally, we conduct numerical studies to provide additional managerial insights.
American Psychological Association (APA)
Xue, Weili& Xu, Xiaolin& Wang, Ruxian. 2013. Combined Sales Effort and Inventory Control under Demand Uncertainty. Discrete Dynamics in Nature and Society،Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-513602
Modern Language Association (MLA)
Xue, Weili…[et al.]. Combined Sales Effort and Inventory Control under Demand Uncertainty. Discrete Dynamics in Nature and Society No. 2013 (2013), pp.1-8.
https://search.emarefa.net/detail/BIM-513602
American Medical Association (AMA)
Xue, Weili& Xu, Xiaolin& Wang, Ruxian. Combined Sales Effort and Inventory Control under Demand Uncertainty. Discrete Dynamics in Nature and Society. 2013. Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-513602
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-513602