Shortages of perishables control for a stochastic inventory system in retail through dynamic pricing
We address the management of a single product over a finite time horizon, with customer arrivals modeled as a heterogeneous compound Poisson process. The arrival rate depends on the inventory level and is adjusted by a time-dependent, unknown weight function, incorporating scenario of shortages. Retail price serves as the control variable for regulating this rate. Within the framework of diffusion approximation for the inventory process and a linear dependence of arrival intensity on price, we formulate and solve the expected revenue maximization problem concerning the weight function. Furthermore, two types of near-optimal weight functions are proposed, and the results of numerical optimization and simulation are presented. Contribution of the authors: the authors contributed equally to this article. The authors declare no conflicts of interests.
Keywords
dynamic pricing,
price sensitive demand,
compound Poisson demand,
diffusion approximation,
shortagesAuthors
| Kitaeva Anna V. | National Research Tomsk State University | kit1157@yandex.ru |
| Yu Cao | National Research Tomsk State University | ch.cy@stud.tsu.ru |
Всего: 2
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