Joint Inventory and Pricing for a One-Warehouse Multistore Problem: Spiraling Phenomena, Near Optimal Policies, and the Value of Dynamic Pricing

References

• Ahn H-S, Jasin S, Kaminsky P, Wang Y (2018) Analysis of deterministic control and its improvements for an inventory problem with multiproduct batch differentiation. Oper. Res. 66(1):58–76.Link, Google Scholar
• Bernstein F, Federgruen A (2003) Pricing and replenishment strategies in a distribution system with competing retailers. Oper. Res. 51(3):409–426.Link, Google Scholar
• Bijvank M, Vis IFA (2011) Lost-sales inventory theory: A review. Eur. J. Oper. Res. 215(1):1–13.Crossref, Google Scholar
• Bitran G, Caldentey R (2003) An overview of pricing models for revenue management. Manufacturing Service Oper. Management 5(3):203–229.Link, Google Scholar
• Bumpensanti P, Wang H (2020) A re-solving heuristic with uniformly bounded loss for network revenue management. Management Sci. 66(7):2993–3009.Link, Google Scholar
• Chan LMA, Max Shen ZJ, Simchi-Levi D, Swann JL (2004) Coordination of pricing and inventory decisions: A survey and classification. Handbook of Quantitative Supply Chain Analysis (Springer), 335–392.Google Scholar
• Chan LMA, Muriel A, Shen Z-JM, Simchi-Levi D, Teo C-P (2002) Effective zero-inventory-ordering policies for the single-warehouse multiretailer problem with piecewise linear cost structures. Management Sci. 48(11):1446–1460.Link, Google Scholar
• Chen X, Simchi-Levi D (2004) Coordinating inventory control and pricing strategies with random demand and fixed ordering cost: The finite horizon case. Oper. Res. 52(6):887–896.Link, Google Scholar
• Chen X, Simchi-Levi D (2012) Pricing and inventory management. The Oxford Handbook of Pricing Management (Citeseer), 784–824.Crossref, Google Scholar
• Chen F, Federgruen A, Zheng Y-S (2001a) Coordination mechanisms for a distribution system with one supplier and multiple retailers. Management Sci. 47(5):693–708.Link, Google Scholar
• Chen F, Federgruen A, Zheng Y-S (2001b) Near-optimal pricing and replenishment strategies for a retail/distribution system. Oper. Res. 49(6):839–853.Link, Google Scholar
• Chen Q, Jasin S, Duenyas I (2016) Real-time dynamic pricing with minimal and flexible price adjustment. Management Sci. 62(8):2437–2455.Link, Google Scholar
• Chen Y, Ray S, Song Y (2006) Optimal pricing and inventory control policy in periodic-review systems with fixed ordering cost and lost sales. Naval Res. Logist. 53(2):117–136.Crossref, Google Scholar
• Cheung M, Elmachtoub AN, Levi R, Shmoys DB (2016) The submodular joint replenishment problem. Math. Programming 158(1):207–233.Crossref, Google Scholar
• Chopra S, Meindl P, Kalra DV (2013) Supply Chain Management: Strategy, Planning, and Operation, vol. 232 (Pearson).Google Scholar
• Ciocan DF, Farias V (2012) Model predictive control for dynamic resource allocation. Math. Oper. Res. 37(3):501–525.Link, Google Scholar
• Clark AJ, Scarf H (1960) Optimal policies for a multi-echelon inventory problem. Management Sci. 6(4):475–490.Link, Google Scholar
• Cooper WL (2002) Asymptotic behavior of an allocation policy for revenue management. Oper. Res. 50(4):720–727.Link, Google 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.Link, Google Scholar
• Federgruen A, Heching A (1999) Combined pricing and inventory control under uncertainty. Oper. Res. 47(3):454–475.Link, Google Scholar
• Federgruen A, Heching A (2002) Multilocation combined pricing and inventory control. Manufacturing Service Oper. Management 4(4):275–295.Link, Google Scholar
• Federgruen A, Tzur M (1999) Time-partitioning heuristics: Application to one warehouse, multiitem, multiretailer lot-sizing problems. Naval Res. Logist. 46(5):463–486.Crossref, Google Scholar
• Feng Q, Luo S, Shanthikumar JG (2019) Integrating dynamic pricing with inventory decisions under lost sales. Management Sci. 66(5):2232–2247.Link, Google Scholar
• Gallego G, Van Ryzin G (1994) Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Sci. 40(8):999–1020.Link, Google Scholar
• Gallego G, Van Ryzin G (1997) A multiproduct dynamic pricing problem and its applications to network yield management. Oper. Res. 45(1):24–41.Link, Google Scholar
• Jackson PL (1988) Stock allocation in a two-echelon distribution system or “what to do until your ship comes in.” Management Sci. 34(7):880–895.Link, Google Scholar
• Jain A, Moinzadeh K, Zhou Y-P (2012) A single-supplier, multiple-retailer model with single-season, multiple-ordering opportunities, and fixed ordering cost. Oper. Res. 60(5):1098–1110.Link, Google Scholar
• Jasin S (2014) Reoptimization and self-adjusting price control for network revenue management. Oper. Res. 62(5):1168–1178.Link, Google Scholar
• Jasin S, Kumar S (2012) A re-solving heuristic with bounded revenue loss for network revenue management with customer choice. Math. Oper. Res. 37(2):313–345.Link, Google Scholar
• Jasin S, Kumar S (2013) Analysis of deterministic LP-based booking limit and bid price controls for revenue management. Oper. Res. 61(6):1312–1320.Link, Google Scholar
• Karlin S, Scarf H (1958) Inventory models of the Arrow-Harris-Marschak type with time lag. Studies in the Mathematical Theory of Inventory and Production (Stanford Unversity Press, Stanford, CA).Google Scholar
• Lei Y, Jasin S (2020) Real-time dynamic pricing for revenue management with reusable resources, advance reservation, and deterministic service time requirements. Oper. Res. 68(3):676–685.Link, Google Scholar
• Lei Y, Jasin S, Sinha A (2018) Joint dynamic pricing and order fulfillment for e-commerce retailers. Manufacturing Service Oper. Management 20(2):269–284.Link, Google Scholar
• Levi R, Roundy RO, Shmoys DB (2006) Primal-dual algorithms for deterministic inventory problems. Math. Oper. Res. 31(2):267–284.Link, Google Scholar
• Levi R, Roundy R, Shmoys D, Sviridenko M (2008) A constant approximation algorithm for the one-warehouse multiretailer problem. Management Sci. 54(4):763–776.Link, Google Scholar
• Li Q, Zheng S (2006) Joint inventory replenishment and pricing control for systems with uncertain yield and demand. Oper. Res. 54(4):696–705.Link, Google Scholar
• Marklund J, Rosling K (2012) Lower bounds and heuristics for supply chain stock allocation. Oper. Res. 60(1):92–105.Link, Google Scholar
• Miao S, Jasin S, Chao X (2020) Asymptotically optimal Lagrangian policies for one-warehouse multi-store system with lost sales. Preprint, submitted April 6, https://dx.doi.org/10.2139/ssrn.3552995.Google Scholar
• Morton TE (1969) Bounds on the solution of the lagged optimal inventory equation with no demand backlogging and proportional costs. SIAM Rev. 11(4):572–596.Crossref, Google Scholar
• Nahmias S, Olsen TL (2015) Production and Operations Analysis (Waveland Press, Long Grove, IL).Google Scholar
• Nambiar M, Simchi-Levi D, Wang H (2019) Dynamic inventory allocation with demand learning for seasonal goods. Preprint, submitted November 5, https://dx.doi.org/10.2139/ssrn.3475708.Google Scholar
• Oh S, Sourirajan K, Ettl M (2014) Joint pricing and production decisions in an assemble-to-order system. Manufacturing Service Oper. Management 16(4):529–543.Link, Google Scholar
• Reiman MI, Wang Q (2008) An asymptotically optimal policy for a quantity-based network revenue management problem. Math. Oper. Res. 33(2):257–282.Link, Google Scholar
• Secomandi N (2008) An analysis of the control-algorithm re-solving issue in inventory and revenue management. Manufacturing Service Oper. Management 10(3):468–483.Link, Google Scholar
• Shen Z-JM, Shu J, Simchi-Levi D, Teo C-P, Zhang J (2009) Approximation algorithms for general one-warehouse multi-retailer systems. Naval Res. Logist. 56(7):642–658.Crossref, Google Scholar
• Smith SA, Agrawal N (2017) Optimal markdown pricing and inventory allocation for retail chains with inventory dependent demand. Manufacturing Service Oper. Management 19(2):290–304.Link, Google Scholar
• Whitin TM (1955) Inventory control and price theory. Management Sci. 2(1):61–68.Link, Google Scholar
• Zangwill WI (1966) A deterministic multiproduct, multi-facility production and inventory model. Oper. Res. 14(3):486–507.Link, Google Scholar
• Zipkin P (2008) On the structure of lost-sales inventory models. Oper. Res. 56(4):937–944.Link, Google Scholar