KMS Of Academy of mathematics and systems sciences, CAS
Managing demand uncertainty: Probabilistic selling versus inventory substitution | |
Zhang, Yi1; Hu, Guowei1; Wang, Shouyang2; Zhang, Juliang1; Fernandez, Vicenc3 | |
2018-02-01 | |
发表期刊 | INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS |
ISSN | 0925-5273 |
卷号 | 196页码:56-67 |
摘要 | Demand variability is prevailing in the current rapidly changing business environment, which makes it difficult for a retailer that sells multiple substitutable products to determine the optimal inventory. To combat demand uncertainty, both strategies of inventory substitution and probabilistic selling can be used. Although the two strategies differ in operation, we believe that they share a common feature in combating demand uncertainty by encouraging some customers to give up some specific demand for the product to enable demand substitution. It is interesting to explore which strategy is more advantageous to the retailer. We endogenize the inventory decision and demonstrate the efficiency of probabilistic selling through demand substitution. Then we analyze some special cases without cannibalization, and computationally evaluate the profitability and inventory decisions of the two strategies in a more general case to generate managerial insights. The results show that the retailer should adjust inventory decisions depending on products' substitution possibility. The interesting computational result is that probabilistic selling is more profitable with relatively lower product similarity and higher price-sensitive customers, while inventory substitution outperforms probabilistic selling with higher product similarity. Higher demand uncertainty will increase the profitability advantage of probabilistic selling over inventory substitution. |
关键词 | OR in marketing Probabilistic selling Opaque selling Inventory substitution Demand uncertainty |
DOI | 10.1016/j.ijpe.2017.10.001 |
语种 | 英语 |
资助项目 | NSFC[71390334] ; NSFC[71532002] ; Beijing Philosophy and Social Science Foundation[13JGB042] ; Fundamental Research Funds for the Central Universities[2015jbwy011] |
WOS研究方向 | Engineering ; Operations Research & Management Science |
WOS类目 | Engineering, Industrial ; Engineering, Manufacturing ; Operations Research & Management Science |
WOS记录号 | WOS:000423635600005 |
出版者 | ELSEVIER SCIENCE BV |
引用统计 | |
文献类型 | 期刊论文 |
条目标识符 | http://ir.amss.ac.cn/handle/2S8OKBNM/29477 |
专题 | 系统科学研究所 |
通讯作者 | Hu, Guowei |
作者单位 | 1.Beijing Jiaotong Univ, Beijing 100044, Peoples R China 2.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 3.Univ Politecn Cataluna, Dept Management, Terrassa 08222, Spain |
推荐引用方式 GB/T 7714 | Zhang, Yi,Hu, Guowei,Wang, Shouyang,et al. Managing demand uncertainty: Probabilistic selling versus inventory substitution[J]. INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS,2018,196:56-67. |
APA | Zhang, Yi,Hu, Guowei,Wang, Shouyang,Zhang, Juliang,&Fernandez, Vicenc.(2018).Managing demand uncertainty: Probabilistic selling versus inventory substitution.INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS,196,56-67. |
MLA | Zhang, Yi,et al."Managing demand uncertainty: Probabilistic selling versus inventory substitution".INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS 196(2018):56-67. |
条目包含的文件 | 条目无相关文件。 |
除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。
修改评论