Dynamic Pricing and Inventory Control for Substitutable Products Based on Market Conditions

Published Online:https://doi.org/10.1287/msom.2022.0227

References

  • Akçay Y, Natarajan HP, Xu SH (2010) Joint dynamic pricing of multiple perishable products under consumer choice. Management Sci. 56(8):1345–1361.LinkGoogle Scholar
  • Anderson S, Palma A, Thisse J-F (1992) Discrete Choice Theory of Product Differentiation (MIT Press, Cambridge, MA).CrossrefGoogle Scholar
  • Aydin G, Ryan JK (2000) Product line selection and pricing under the multinomial logit choice model. Working paper, Stanford University, Stanford, CA.Google Scholar
  • Aydin G, Porteus EL (2008) Joint inventory and pricing decisions for an assortment. Oper. Res. 56(5):1247–1255.LinkGoogle Scholar
  • Bernstein F, Li Y, Shang K (2016) A simple heuristic for joint inventory and pricing models with lead time and backorders. Management Sci. 62(8):2358–2373.LinkGoogle Scholar
  • Bitran G, Caldentey R (2003) Commissioned paper: An overview of pricing models for revenue management. Manufacturing Service Oper. Management 5(3):203–229.LinkGoogle Scholar
  • Bru R, Pedroche F, Szyld DB (2005) Subdirect sums of nonsingular M-matrices and of their inverses. Electron. J. Linear Algebra 13:162–174.CrossrefGoogle Scholar
  • Ceryan O, Sahin O, Duenyas I (2013) Dynamic pricing of substitutable products in the presence of capacity flexibility. Manufacturing Service Oper. Management 15(1):86–101.LinkGoogle Scholar
  • Chan LMA, Shen ZJM, Simchi-Levi D, Swann JL (2004) Coordination of pricing and inventory decisions: A survey and classification. Simchi-Levi D, Wu SD, Shen ZJM, eds. Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era, International Series in Operations Research & Management Science, vol. 74 (Springer, Boston), 335–392.CrossrefGoogle Scholar
  • Chen S (2004) A property concerning the Hadamard powers of inverse M-matrices. Linear Algebra Appl. 381(1):53–60.CrossrefGoogle Scholar
  • Chen M, Chen Z-L (2015) Recent developments in dynamic pricing research: Multiple products, competition, and limited demand information. Production Oper. Management 24(5):704–731.CrossrefGoogle Scholar
  • Chen M, Chen Z-L (2018) Robust dynamic pricing with two substitutable products. Manufacturing Service Oper. Management 20(2):249–268.LinkGoogle Scholar
  • Chen X, Simchi-Levi D (2012) Pricing and inventory management. Philips R, Ozalp O, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 784–822.CrossrefGoogle Scholar
  • Chen X, Simchi-Levi D (2004a) Coordinating inventory control and pricing strategies with random demand and fixed ordering cost: The finite horizon case. Oper. Res. 52(6):887–896.LinkGoogle Scholar
  • Chen X, Simchi-Levi D (2004b) Coordinating inventory control and pricing strategies with random demand and fixed ordering cost: The infinite horizon case. Math. Oper. Res. 29(3):698–723.LinkGoogle Scholar
  • Chen Q, Jasin S, Duenyas I (2021) Joint learning and optimization of multi-product pricing with finite resource capacity and unknown demand parameters. Oper. Res. 69(2):560–573.LinkGoogle Scholar
  • Dong L, Kouvelis P, Tian Z (2009) Dynamic pricing and inventory control of substitute products. Manufacturing Service Oper. Management 11(2):317–339.LinkGoogle Scholar
  • Elmaghraby W, Keskinocak P (2003) Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions. Management Sci. 49(10):1287–1309.LinkGoogle Scholar
  • Federgruen A, Heching A (1999) Combined pricing and inventory control under uncertainty. Oper. Res. 47(3):454–475.LinkGoogle Scholar
  • Gallego G, Wang R (2014) Multiproduct pricing optimization and competition under the nested logit model with product-differentiated price sensitivities. Oper. Res. 62(2):450–461.LinkGoogle Scholar
  • Gallego G, Huh WT, Kang W, Phillips R (2006) Price competition with the attraction demand model: Existence of unique equilibrium and its stability. Manufacturing Service Oper. Management 8(4):359–375.LinkGoogle Scholar
  • Ghoniem A, Maddah B (2015) Integrated retail decisions with multiple selling periods and customer segments: Optimization and insights. Omega 55:38–52.CrossrefGoogle Scholar
  • Gilbert SM (2000) Coordination of pricing and multiple-period production across multiple constant priced goods. Management Sci. 46(12):1602–1616.LinkGoogle Scholar
  • Hall JM, Kopalle PK, Krishna A (2010) Retailer dynamic pricing and ordering decisions: Category management versus brand-by-brand approaches. J. Retailing 86(2):172–183.CrossrefGoogle Scholar
  • Heyman DP, Sobel MJ (1984) Stochastic Models in Operations Research, Volume II: Stochastic Optimization (McGraw-Hill, New York).Google Scholar
  • Horn RA, Johnson CR (1991) Topics in Matrix Analysis (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Imam NI (1984) The Schur complement and the inverse M-matrix problem. Linear Algebra Appl. 62:235–240.CrossrefGoogle Scholar
  • Karakul M, Chan LMA (2010) Joint pricing and procurement of substitutable products with random demands – A technical note. Eur. J. Oper. Res. 201(1):324–328.CrossrefGoogle Scholar
  • Li H (2020) Optimal pricing under diffusion-choice models. Oper. Res. 68(1):115–133.LinkGoogle Scholar
  • Li H, Huh WT (2011) Pricing multiple products with the multinomial logit and nested logit models: Concavity and implications. Manufacturing Service Oper. Management 13(4):549–563.LinkGoogle Scholar
  • Li H, Webster S (2017) Optimal pricing of correlated product options under the paired combinatorial logit model. Oper. Res. 65(5):1215–1230.LinkGoogle Scholar
  • Li G, Rusmevichientong P, Topaloglu H (2015) The D-level nested logit model: Assortment and price optimization problems. Oper. Res. 63(2):325–342.LinkGoogle Scholar
  • Li H, Webster S, Yu G (2020) Product design under multinomial logit choices: optimization of quality and prices in an evolving product line. Manufacturing Service Oper. Management 22(5):1011–1025.LinkGoogle Scholar
  • Li H, Webster S, Mason N, Kempf K (2019) Product-line pricing under discrete mixed multinomial logit demand. Manufacturing Service Oper. Management 21(1):14–28.LinkGoogle Scholar
  • Maddah B, Bish EK, Tarhini H (2014) Newsvendor pricing and assortment under Poisson decomposition. IIE Trans. 46(6):567–584.CrossrefGoogle Scholar
  • Maglaras C, Meissner J (2006) Dynamic pricing strategies for multiproduct revenue management problems. Manufacturing Service Oper. Management 8(2):136–148.LinkGoogle Scholar
  • Martínez S, Michon G, Martín JS (1994) Inverse of strictly ultrametric matrices are of Stieltjes type. SIAM J. Matrix Anal. Appl. 15(1):98–106.CrossrefGoogle Scholar
  • Nabben R, Varga RS (1994) A linear algebra proof that the inverse of a strictly ultrametric matrix is a strictly diagonally dominant Stieltjes matrix. SIAM J. Matrix Anal. Appl. 15(1):107–113.CrossrefGoogle Scholar
  • Petruzzi NC, Dada M (1999) Pricing and the newsvendor problem: A review with extensions. Oper. Res. 47(2):183–194.LinkGoogle Scholar
  • Phillips R (2005) Pricing and Revenue Optimization (Stanford University Press, Stanford, CA).CrossrefGoogle Scholar
  • Song J-S, Xue Z (2021) Demand shaping through bundling and product configuration: A dynamic multiproduct inventory-pricing model. Oper. Res. 69(2):525–544.LinkGoogle Scholar
  • Subramanian S, Sherali HD (2010) A fractional programming approach for retail category price optimization. J. Global Optim. 48(2):263–277.CrossrefGoogle Scholar
  • Talluri KT, van Ryzin GJ (2005) The Theory and Practice of Revenue Management (Springer, New York).CrossrefGoogle Scholar
  • Tomlin B, Wang Y (2008) Pricing and operational recourse in coproduction systems. Management Sci. 54(3):522–537.LinkGoogle Scholar
  • Wang R, Ke C, Cui S (2022) Product price, quality, and service decisions under consumer choice models. Manufacturing Service Oper. Management 24(1):430–447.LinkGoogle Scholar
  • Zhu K, Thonemann UW (2009) Coordination of pricing and inventory control across products. Naval Res. Logist. 56(2):175–190.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.