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Erschienen in:
2006 | OriginalPaper | Buchkapitel
Simultaneous Dynamic Pricing and Lot-sizing Decision for a Discrete Number of Price Variations
verfasst von : Sandra Transchel, Stefan Minner
Erschienen in: Operations Research Proceedings 2005
Verlag: Springer Berlin Heidelberg
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We investigate the impact of a dynamic pricing strategy on the economic ordering decision where a discrete number of price changes within each order cycle is allowed. Customer reaction to prices is modelled by a linear price response function and the ordering process is subject to variable procurement cost and setup cost. Inventories are subject to holding cost. The objective is to maximize average profit by choosing the optimal lot-size and pricing strategy.