Article ID: | iaor19991598 |
Country: | Netherlands |
Volume: | 103 |
Issue: | 3 |
Start Page Number: | 573 |
End Page Number: | 583 |
Publication Date: | Dec 1997 |
Journal: | European Journal of Operational Research |
Authors: | Baker R.C., Urban Timothy L. |
This paper investigates a single-period inventory model in which the demand of the product is a deterministic, multivariate function of price, time, and level of inventory. Models are formulated for the basic pricing case and the case with a price markdown during the season. Solution methodologies are presented for each case when the pricing decisions are predetermined and when they are decision variables. Comments on the practical use of this model are presented, and sensitivity analysis is conducted on the decision variables and demand parameters.