Ordering and pricing policies for random discount offerings and permissible shortages (Q2474689)
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English | Ordering and pricing policies for random discount offerings and permissible shortages |
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Ordering and pricing policies for random discount offerings and permissible shortages (English)
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6 March 2008
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Summary: This study develops the ordering and pricing policies of a retailer, confronted with a price-dependent demand and a vendor offering a discount on the wholesale/regular price during sales sub-periods, which are repeated randomly and last for a random amount of time. The inventory level forms a regenerative stochastic process, with regeneration points at the start of the discount sub-periods. The objective is to maximise the long run expected profit per unit time, expressed as a function the order quantity, reorder level and retail price for regular and discount sub-periods.
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repetitive special-sales
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stochastic inventory
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renewal reward theroem
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