Joint pricing and inventory control for a stochastic inventory system with Brownian motion demand

doi:10.1080/24725854.2017.1355126

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	Joint pricing and inventory control for a stochastic inventory system with Brownian motion demand
	Yao, Dacheng
	2017
发表期刊	IISE TRANSACTIONS
ISSN	2472-5854
卷号	49 期号:12 页码:1101-1111
摘要	In this article, we consider an infinite horizon, continuous-review, stochastic inventory system in which the cumulative customers' demand is price dependent and is modeled as a Brownian motion. Excess demand is backlogged. The revenue is earned by selling products and the costs are incurred by holding/shortage and ordering; the latter consists of a fixed cost and a proportional cost. Our objective is to simultaneously determine a pricing strategy and an inventory control strategy to maximize the expected long-run average profit. Specifically, the pricing strategy provides the price p(t) for any time t >= 0 and the inventory control strategy characterizes when and how much we need to order. We show that an ( s, S, p) policy is optimal and obtain the equations of optimal policy parameters, where p = {p(t)* : t >= 0}. Furthermore, we find that at each time t, the optimal price p(t)* depends on the current inventory level z, and it is increasing in [s, z] and decreasing in [z,infinity), where z is a negative level.
关键词	Stochastic inventory model pricing Brownian motion demand (s, S, p) policy impulse control drift rate control
DOI	10.1080/24725854.2017.1355126
语种	英语
资助项目	National Natural Science Foundation of China[11401566] ; National Natural Science Foundation of China[11771432]
WOS研究方向	Engineering ; Operations Research & Management Science
WOS类目	Engineering, Industrial ; Operations Research & Management Science
WOS记录号	WOS:000416712700002
出版者	TAYLOR & FRANCIS INC
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/134
专题	应用数学研究所
通讯作者	Yao, Dacheng
作者单位	Chinese Acad Sci, Acad Math & Syst Sci, Beijing, Peoples R China
推荐引用方式 GB/T 7714	Yao, Dacheng. Joint pricing and inventory control for a stochastic inventory system with Brownian motion demand[J]. IISE TRANSACTIONS,2017,49(12):1101-1111.
APA	Yao, Dacheng.(2017).Joint pricing and inventory control for a stochastic inventory system with Brownian motion demand.IISE TRANSACTIONS,49(12),1101-1111.
MLA	Yao, Dacheng."Joint pricing and inventory control for a stochastic inventory system with Brownian motion demand".IISE TRANSACTIONS 49.12(2017):1101-1111.