Joint Inventory and Pricing Decisions with Reference Effects


Güler M. G. , Bilgiç T., Güllü A. R.

23rd Annual POMS Conference, Illinois, United States Of America, 20 - 23 April 2012, pp.110

  • Publication Type: Conference Paper / Summary Text
  • City: Illinois
  • Country: United States Of America
  • Page Numbers: pp.110

Abstract

We analyze joint inventory and pricing problem of a single product whose stochastic demand is contingent on the current price and the price history which is captured by the reference price. We show the optimality of a state-dependent order-up-to policy for concave demand models and provide numerical studies .