IDEALS Home University of Illinois at Urbana-Champaign logo The Alma Mater The Main Quad

Coordinated pricing and inventory management

Show full item record

Bookmark or cite this item: http://hdl.handle.net/2142/29498

Files in this item

File Description Format
PDF Hu_Peng.pdf (820KB) (no description provided) PDF
Title: Coordinated pricing and inventory management
Author(s): Hu, Peng
Advisor(s): Chen, Xin
Contributor(s): Pang, Jong-Shi; Zhou, Enlu; Petruzzi, Nicholas; Ouyang, Yanfeng
Department / Program: Industrial&Enterprise Sys Eng
Discipline: Industrial Engineering
Degree Granting Institution: University of Illinois at Urbana-Champaign
Degree: Ph.D.
Genre: Doctoral
Subject(s): dynamic pricing inventory management preservation of supermodularity
Abstract: This dissertation mainly focuses on coordinated pricing and inventory management problems, where the related background is provided in Chapter 1. Several periodic-review models are then discussed in Chapters 2,3,4 and 5, respectively. Chapter 2 analyzes a deterministic single-product model, where a price adjustment cost incurs if the current selling price is changed from the previous period. We develop exact algorithms for the problem under different conditions and find out that computation complexity varies significantly associated with the cost structure. %Moreover, our numerical study indicates that dynamic pricing strategies may outperform static pricing strategies even when price adjustment cost accounts for a significant portion of the total profit. Chapter 3 develops a single-product model in which demand of a period depends not only on the current selling price but also on past prices through the so-called reference price. Strongly polynomial time algorithms are designed for the case without no fixed ordering cost, and a heuristic is proposed for the general case together with an error bound estimation. Moreover, our illustrates through numerical studies that incorporating reference price effect into coordinated pricing and inventory models can have a significant impact on firms' profits. Chapter 4 discusses the stochastic version of the model in Chapter 3 when customers are loss averse. It extends the associated results developed in literature and proves that the reference price dependent base-stock policy is proved to be optimal under a certain conditions. Instead of dealing with specific problems, Chapter 5 establishes the preservation of supermodularity in a class of optimization problems. This property and its extensions include several existing results in the literature as special cases, and provide powerful tools as we illustrate their applications to several operations problems: the stochastic two-product model with cross-price effects, the two-stage inventory control model, and the self-financing model.
Issue Date: 2012-02-01
Genre: thesis
URI: http://hdl.handle.net/2142/29498
Rights Information: Copy right 2011 Peng Hu
Date Available in IDEALS: 2014-02-01
Date Deposited: 2011-12
 

This item appears in the following Collection(s)

Show full item record

Item Statistics

  • Total Downloads: 33
  • Downloads this Month: 1
  • Downloads Today: 0

Browse

My Account

Information

Access Key