Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand
dc.contributor.author | Akan, M. | |
dc.contributor.author | Albey, Erinç | |
dc.contributor.author | Güler, M. G. | |
dc.date.accessioned | 2023-04-04T08:27:57Z | |
dc.date.available | 2023-04-04T08:27:57Z | |
dc.date.issued | 2021-04 | |
dc.identifier.issn | 0360-8352 | en_US |
dc.identifier.uri | http://hdl.handle.net/10679/8102 | |
dc.identifier.uri | https://www.sciencedirect.com/science/article/pii/S036083522100053X | |
dc.description.abstract | In this work we consider the dynamic pricing problem of a retailer operating in a market with a single fashion item and under time-dependent interest rate. The demand is assumed to be deterministic and dependent on the price and decay with time, i.e., the market shrinks throughout the horizon. Using an optimal-control-theoretic approach, we analytically derive the optimal pricing and inventory strategy for the retailer over a finite horizon setting. We further analyze the ramifications of the optimal pricing decision for different initial inventory levels dictated by the relationship between the supplier and the retailer; and for varying market interest rates. Optimal dynamic pricing policy is a continuous function, which is almost impossible to use in practice. This is handled using approximate piece-wise constant pricing policies. The trade-off between dynamic pricing policy and approximate policies is also investigated. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Elsevier | en_US |
dc.relation.ispartof | Computers and Industrial Engineering | |
dc.rights | restrictedAccess | |
dc.title | Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand | en_US |
dc.type | Article | en_US |
dc.peerreviewed | yes | en_US |
dc.publicationstatus | Published | en_US |
dc.contributor.department | Özyeğin University | |
dc.contributor.authorID | (ORCID 0000-0001-5004-0578 & YÖK ID 144710) Albey, Erinç | |
dc.contributor.ozuauthor | Albey, Erinç | |
dc.identifier.volume | 154 | en_US |
dc.identifier.wos | WOS:000632964300040 | |
dc.identifier.doi | 10.1016/j.cie.2021.107149 | en_US |
dc.subject.keywords | Pricing | en_US |
dc.subject.keywords | Inventory management | en_US |
dc.subject.keywords | Optimal control | en_US |
dc.subject.keywords | Time-dependent interest rate | en_US |
dc.subject.keywords | Fashion products | en_US |
dc.identifier.scopus | SCOPUS:2-s2.0-85101011548 | |
dc.relation.publicationcategory | Article - International Refereed Journal - Institutional Academic Staff |
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