Jointed decision model on ordering and pricing for short-life-cycle product

Bin Liu, Sifeng Liu, Guanghua Qiu, Zhenjie Zhai

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Abstract

The jointed decision question on ordering and pricing for a short-life-cycle product is studied under the stochastic demand depended on selling prices (only focus the additive stochastic demand in this paper). According to the marketing practices, the retailer sells his product in different periods with different marketing policies. Firstly, the jointed decision question is used for a centralized system with a stochastic dynamic programming model. Then, the expected profit function of the whole system is proved to be concave on decision vectors, respectively, and the iterative search algorithm is given to find the optimal decision vectors. Finally, the characteristics of the decision method are analyzed with some simulations. Results show that the system performance is mainly from the first selling period, and dealers pay more attentions to the period to find out more profits.

Original languageEnglish (US)
Pages (from-to)691-694
Number of pages4
JournalNanjing Hangkong Hangtian Daxue Xuebao/Journal of Nanjing University of Aeronautics and Astronautics
Volume39
Issue number5
StatePublished - Oct 1 2007

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All Science Journal Classification (ASJC) codes

  • Aerospace Engineering

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