Dynamic Pricing and Inventory Control of Substitute Products

Lingxiu Dong
Lingxiu Dong
[email protected]
Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130
Search for more papers by this author
,
Panos Kouvelis
Panos Kouvelis
[email protected]
Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130
Search for more papers by this author
,
Zhongjun Tian
Zhongjun Tian
[email protected]
School of International Business Administration, Shanghai University of Finance and Economics, Shanghai 200433, China
Search for more papers by this author

Lingxiu Dong

[email protected]

Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130

Search for more papers by this author

Panos Kouvelis

[email protected]

Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130

Search for more papers by this author

Zhongjun Tian

[email protected]

School of International Business Administration, Shanghai University of Finance and Economics, Shanghai 200433, China

Search for more papers by this author

Published Online:5 Aug 2008https://doi.org/10.1287/msom.1080.0221

Supplemental Material

msom.1080.0221-sm-dynamic_pricing.zip (180 KB)

Cited by
- Pricing a Finite Inventory of Substitutable Products with Show-All Constraint
  Vineet Goyal,
  Garud Iyengar,
  Rajan Udwani
  3 June 2026 | Operations Research, Vol. 0, No. 0
- The Focal Multinomial Logit Model: Threshold Effects on Consumer Choice, Assortment, Pricing and Estimation
  Lei Guan,
  Kameng Nip,
  Ruxian Wang,
  Lianmin Zhang
  29 December 2025 | Manufacturing & Service Operations Management, Vol. 28, No. 3
- Data-Driven Asset Selling
  28 November 2025 | Production and Operations Management, Vol. 35, No. 5
- Event ticket pricing with capacity constraints and price restrictions
  26 April 2026 | Production and Operations Management
- Dynamic Pricing for Two-Sided Marketplaces with Offer Expiration
  Yufeng Cao,
  Anton Kleywegt,
  He Wang
  12 August 2025 | Management Science, Vol. 72, No. 4
- Dynamic Pricing for a Multiproduct Consumer Electronics Trade-in Program
  Zhuoluo Zhang,
  Yanzhe (Murray) Lei,
  Sean X. Zhou
  10 October 2025 | Operations Research, Vol. 74, No. 2
- Multi -product pricing under the q-generalized logit model
  Operations Research Letters, Vol. 65
- Discrete Choice Models with Piecewise Linear Utility: Modeling, Estimation, and Pricing
  Chenxu Ke,
  Ruxian Wang,
  Zifeng Zhao
  23 February 2026 | Manufacturing & Service Operations Management, Vol. 0, No. 0
- Constrained Pricing in Logit-Based Revenue Management
  Qian Shao,
  Tien Mai,
  Shih-Fen Cheng
  20 February 2026 | INFORMS Journal on Computing, Vol. 0, No. 0
- Multiproduct Dynamic Pricing With Popularity Bias
  4 February 2026 | Production and Operations Management, Vol. 75
- Dynamic Pricing and Inventory Control for Substitutable Products Based on Market Conditions
  Jing-Sheng Song,
  Zhengliang Xue,
  Xiaobei Shen
  14 October 2025 | Manufacturing & Service Operations Management, Vol. 28, No. 1
- Optimizing last-mile delivery: a dynamic compensation strategy for occasional drivers
  26 December 2024 | OR Spectrum, Vol. 47, No. 4
- Dynamic pricing with (extra) seat reservations under the nested logit model
  27 May 2025 | OR Spectrum, Vol. 47, No. 4
- Heuristic solutions for nonlinear dynamic pricing in the presence of multiunit demand and two-dimensional customer heterogeneity
  26 May 2025 | OR Spectrum, Vol. 47, No. 4
- Dynamic programming in inventory management: A review
  Computers & Operations Research, Vol. 183
- Procurement, Dynamic Pricing, and Early Exit Decisions for Products with Short Life Cycles
  24 July 2025 | Methodology and Computing in Applied Probability, Vol. 27, No. 3
- A matheuristic for complex pricing problems: An application to rentable resources
  Computers & Operations Research, Vol. 181
- Estimation Using Marginal Competitor Sales Information
  19 March 2025 | Journal of Operations Management, Vol. 71, No. 5
- On the value of booking data for upsell decision-making in revenue management
  22 June 2024 | Flexible Services and Manufacturing Journal, Vol. 37, No. 2
- Strategic Pricing and Routing to Maximize Profit in Congested Roads Considering Interactions With Travelers
  IEEE Transactions on Control of Network Systems, Vol. 12, No. 2
- Optimizing Offline Product Design and Online Assortment Policy: Measuring the Relative Impact of Each Decision
  Mengxin Wang; ,
  Heng Zhang; ,
  Paat Rusmevichientong; ,
  Max Shen
  6 September 2024 | Management Science, Vol. 71, No. 5
- Multi-product Newsvendor problem with dynamic pricing: a decision interpolation approximation
  4 February 2025 | Optimization Letters, Vol. 19, No. 4
- Product price and delivery-time commitment decisions with reference effects
  Transportation Research Part E: Logistics and Transportation Review, Vol. 197
- Efficient Frontier and Applications in Product Offering and Pricing
  Chenxu Ke; ,
  Lijian Lu; ,
  Ruxian Wang
  16 January 2025 | Manufacturing & Service Operations Management, Vol. 27, No. 2
- Learning Dynamic Selection and Pricing of Out-of-Home Deliveries
  Fabian Akkerman; ,
  Peter Dieter,
  Martijn Mes;
  5 November 2024 | Transportation Science, Vol. 59, No. 2
- Channel selection and pricing optimization in multichannel e-tailing
  11 February 2025 | Industrial Management & Data Systems, Vol. 125, No. 3
- Optimal multi-period pricing and sales effort decisions with a logit demand model in an integrated channel
  15 December 2023 | Kybernetes, Vol. 54, No. 3
- Modeling, Prediction, Assortment and Price Optimization Under Consumer Choice Behavior
  23 January 2025 | Foundations and Trends® in Technology, Information and Operations Management, Vol. 19, No. 1
- Dynamic Pricing with (Extra) Seat Reservations under the Nested Logit Model
  1 January 2025 | SSRN Electronic Journal, Vol. 55
- Optimal pricing policy for green products under supply disruption
  Cleaner Logistics and Supply Chain, Vol. 13
- Effective Adaptive Exploration of Prices and Promotions in Choice-Based Demand Models
  Lalit Jain,
  Zhaoqi Li,
  Erfan Loghmani,
  Blake Mason,
  Hema Yoganarasimhan
  30 May 2024 | Marketing Science, Vol. 43, No. 5
- Price Optimization for a Multistage Choice Model
  22 May 2024 | Production and Operations Management, Vol. 33, No. 7
- Multiunit dynamic pricing with different types of observable customer information
  8 April 2024 | OR Spectrum, Vol. 46, No. 2
- Optimizing Inventory and Pricing for Substitute Products with Soft Supply Constraints
  4 June 2024 | Mathematics, Vol. 12, No. 11
- When is the next order? Nowcasting channel inventories with Point-of-Sales data to predict the timing of retail orders
  European Journal of Operational Research, Vol. 315, No. 1
- Optimal instant discounts of multiple ride options at a ride-hailing aggregator
  European Journal of Operational Research, Vol. 314, No. 2
- Multiproduct Dynamic Pricing with Limited Inventories Under a Cascade Click Model
  Sajjad Najafi,
  Izak Duenyas,
  Stefanus Jasin,
  Joline Uichanco
  22 November 2023 | Manufacturing & Service Operations Management, Vol. 26, No. 2
- Optimal pricing for dual-channel retailing with stochastic attraction demand model
  International Journal of Production Economics, Vol. 268
- Supercharged by Advanced Analytics, JD.com Attains Agility, Resilience, and Shared Value Across Its Supply Chain
  Hao Hu,
  Yongzhi Qi,
  Hau L. Lee,
  Zuo-Jun Max Shen,
  Curtis Liu,
  Weimeng Zhu,
  Ningxuan Kang
  7 February 2024 | INFORMS Journal on Applied Analytics, Vol. 54, No. 1
- Technical Note—A Note on State-Independent Policies in Network Revenue Management
  Chandrasekhar Manchiraju,
  Milind Dawande,
  Ganesh Janakiraman
  16 May 2023 | Operations Research, Vol. 72, No. 1
- Reinforcement Learning for E-Commerce Dynamic Pricing
  27 February 2024
- Reconsidering Volume-based Drug Procurement Policy: The Consequences of Pharmaceutical Manufacturer’s Strategic Behaviors
  1 January 2024 | SSRN Electronic Journal, Vol. 67
- Homomorphic Encrypted Revenue Management
  1 January 2024 | SSRN Electronic Journal, Vol. 24
- Data-Driven Asset Selling
  1 January 2024 | SSRN Electronic Journal, Vol. 56
- Event Ticket Pricing With Capacity Constraints and Price Restrictions
  1 January 2024 | SSRN Electronic Journal, Vol. 56
- A study on selling intergenerational products under competition
  6 March 2023 | International Journal of Systems Science: Operations & Logistics, Vol. 10, No. 1
- Complementarity analysis of a multi‐item inventory model with leading product pricing
  1 December 2023 | Production and Operations Management, Vol. 32, No. 12
- Technical Note—Optimizing Risk-Balancing Return Under Discrete Choice Models
  Hongmin Li,
  Scott Webster
  10 May 2023 | Operations Research, Vol. 71, No. 6
- Bilevel Programming for Manufacturers Operating in an Omnichannel Retailing Environment
  IEEE Transactions on Engineering Management, Vol. 70, No. 11
- Model-Free Assortment Pricing with Transaction Data
  Ningyuan Chen,
  Andre A. Cire,
  Ming Hu,
  Saman Lagzi
  16 January 2023 | Management Science, Vol. 69, No. 10
- Competitive contract design in a retail supply chain under demand uncertainty
  3 May 2023 | Naval Research Logistics (NRL), Vol. 70, No. 7
- Demand management in time-slotted last-mile delivery via dynamic routing with forecast orders
  European Journal of Operational Research, Vol. 309, No. 2
- Multiproduct pricing under the multinomial logit model with local network effects
  13 July 2022 | Decision Sciences, Vol. 54, No. 4
- Network revenue management with online inverse batch gradient descent method
  1 July 2023 | Production and Operations Management, Vol. 32, No. 7
- Recent advances in integrating demand management and vehicle routing: A methodological review
  European Journal of Operational Research, Vol. 306, No. 2
- Supply diversification under random yield: The impact of price postponement
  1 April 2023 | Production and Operations Management, Vol. 32, No. 4
- Product‐line pricing with dual objective of profit and consumer surplus
  1 April 2023 | Production and Operations Management, Vol. 32, No. 4
- Marginal Distribution Model and Its Applications
  21 September 2022
- Integrating online and offline business of a retailer: A customer utility based inventory model
  Computers & Industrial Engineering, Vol. 175
- An exact algorithm for the static pricing problem under discrete mixed logit demand
  EURO Journal on Computational Optimization, Vol. 11
- Lot-sizing and pricing decisions under attraction demand models and multi-channel environment: New efficient formulations
  Operations Research Perspectives, Vol. 10
- Retailing Strategies of Imperfect Produce and the Battle Against Food Waste
  1 January 2023 | SSRN Electronic Journal, Vol. 28
- Discrete Choice Models with Piecewise Linear Utility: Modeling, Estimation and Pricing
  1 January 2023 | SSRN Electronic Journal, Vol. 4
- Assortment and Price Optimization Under a Multi-Attribute (Contextual) Choice Model
  1 January 2023 | SSRN Electronic Journal, Vol. 20
- Dynamic Pricing and Inventory Control of Substitutable Products in a Nonstationary Environment
  1 January 2023 | SSRN Electronic Journal, Vol. 56
- The Optimization of Inbound Marketing: Assortment Planning, Pricing Management, and Paid Advertising
  1 January 2023 | SSRN Electronic Journal, Vol. 40
- On the Collusion Sustainability Condition for Dynamic Pricing with Trigger Strategies
  1 January 2023 | SSRN Electronic Journal, Vol. 110
- Joint Optimization of Pricing and Personalized Recommendations in Online Retailing
  1 January 2023 | SSRN Electronic Journal, Vol. 55
- Green vehicle routing and dynamic pricing for scheduling on-site services
  International Journal of Production Economics, Vol. 254
- Stable allocations for choice-based collaborative price setting
  European Journal of Operational Research, Vol. 302, No. 3
- Joint Learning and Optimization for Multi-Product Pricing (and Ranking) Under a General Cascade Click Model
  Xiangyu Gao,
  Stefanus Jasin,
  Sajjad Najafi,
  Huanan Zhang
  28 January 2022 | Management Science, Vol. 68, No. 10
- Price Optimization Under the Finite-Mixture Logit Model
  Ruben van de Geer,
  Arnoud V. den Boer
  1 March 2022 | Management Science, Vol. 68, No. 10
- Dynamic pricing and inventory control with delivery flexibility
  14 June 2017 | Annals of Operations Research, Vol. 317, No. 2
- Which strategy is better for managing multi-product demand uncertainty: Inventory substitution or probabilistic selling?
  European Journal of Operational Research, Vol. 302, No. 1
- Dynamic Pricing for Dual-Channel Supply Chain considering Consumers with Double-Entry Mental Accounting
  Mathematical Problems in Engineering, Vol. 2022
- On dynamic pricing under model uncertainty
  14 March 2022 | Naval Research Logistics (NRL), Vol. 69, No. 6
- Learning customer preferences and dynamic pricing for perishable products
  Computers & Industrial Engineering, Vol. 171
- Bayesian dithering for learning: Asymptotically optimal policies in dynamic pricing
  1 September 2022 | Production and Operations Management, Vol. 31, No. 9
- Robust product line pricing under the multinomial logit choice model
  16 June 2022 | Concurrent Engineering, Vol. 30, No. 3
- A Framework for Multi-stage Bonus Allocation in Meal Delivery Platform
  14 August 2022
- A Representative Consumer Model in Data-Driven Multiproduct Pricing Optimization
  Zhenzhen Yan,
  Karthik Natarajan,
  Chung Piaw Teo,
  Cong Cheng
  20 January 2022 | Management Science, Vol. 68, No. 8
- Approximation schemes for the joint inventory selection and online resource allocation problem
  1 August 2022 | Production and Operations Management, Vol. 31, No. 8
- Offering Free Upgrades Even Before Stocks Run Out: The Value of Proactive Upgrades
  David Chen,
  Christopher S. Tang,
  Huihui Wang,
  Rowan Wang,
  Yimin Yu
  9 March 2022 | Manufacturing & Service Operations Management, Vol. 24, No. 4
- Multiproduct Pricing with Discrete Price Sets
  Chandrasekhar Manchiraju,
  Milind Dawande,
  Ganesh Janakiraman
  27 January 2022 | Operations Research, Vol. 70, No. 4
- The value of flexible flight-to-route assignments in pre-tactical air traffic management
  Transportation Research Part B: Methodological, Vol. 160
- Online Assortment and Market Segmentation under Bertrand Competition with Set-Dependent Revenues
  16 June 2022 | SIAM Journal on Discrete Mathematics, Vol. 36, No. 2
- Pricing optimization and competition under the linear nested stochastic choice model
  12 July 2021 | Naval Research Logistics (NRL), Vol. 69, No. 2
- Product Line Optimization Considering Network Effects
  IEEE Systems Journal, Vol. 16, No. 1
- Convexity and Feedback in Approximate Dynamic Programming for Delivery Time Slot Pricing
  IEEE Transactions on Control Systems Technology, Vol. 30, No. 2
- Stocking Under Random Demand and Product Variety: Exact Models and Heuristics
  1 March 2022 | Production and Operations Management, Vol. 31, No. 3
- Convex Optimization for Bundle Size Pricing Problem
  Xiaobo Li,
  Hailong Sun,
  Chung Piaw Teo
  5 November 2021 | Management Science, Vol. 68, No. 2
- Platform and product design for markets with quality and feature sensitive customers
  International Journal of Production Economics, Vol. 244
- Gradient-bounded dynamic programming for submodular and concave extensible value functions with probabilistic performance guarantees
  Automatica, Vol. 135
- How Does Risk Hedging Impact Operations? Insights from a Price-Setting Newsvendor Model
  SSRN Electronic Journal, Vol. 2
- Decentralized Pricing and Capacitated Assortment Planning in an Online Marketplace
  SSRN Electronic Journal, Vol. 64
- Pricing a Finite Inventory of Substitutable Products with Show-All Constraint
  1 January 2022 | SSRN Electronic Journal, Vol. 56
- Efficient Frontier and Applications in Product Offering and Pricing
  SSRN Electronic Journal, Vol. 56
- Joint Product Design and Dynamic Assortment Optimization: Integrating Strategic and Tactical Revenue Management
  SSRN Electronic Journal, Vol. 67
- Dynamic Pricing for Multi-Product Consumer Electronics Trade-in Program
  SSRN Electronic Journal, Vol. 56
- Return or Not? Joint Pricing and Refund Optimization for Omni-Channel Retailing
  SSRN Electronic Journal, Vol. 18
- Estimation Using Marginal Competitor Sales Information
  SSRN Electronic Journal, Vol. 23
- Waste Reduction of Perishable Products through Markdowns at Expiry Dates
  SSRN Electronic Journal, Vol. 42
- Price Optimization for a Multi-Stage Choice Model
  SSRN Electronic Journal, Vol. 156
- Show Me the Money: The Economic Impact of Membership-Based Free Shipping Programs on E-Tailers
  Zhen Fang,
  Yi-Chun (Chad) Ho,
  Xue (Jane) Tan,
  Yong Tan
  6 October 2021 | Information Systems Research, Vol. 32, No. 4
- Discrete Choice Models and Applications in Operations Management
  Ruxian Wang
  18 October 2021
- Joint pricing and inventory decisions for substitutable and perishable products under demand uncertainty
  European Journal of Operational Research, Vol. 293, No. 2
- A dynamic programming framework for optimal delivery time slot pricing
  European Journal of Operational Research, Vol. 292, No. 2
- Pricing decisions with reference price effect and risk preference customers
  29 April 2019 | International Transactions in Operational Research, Vol. 28, No. 4
- Revenue-Utility Tradeoff in Assortment Optimization Under the Multinomial Logit Model with Totally Unimodular Constraints
  Mika Sumida,
  Guillermo Gallego,
  Paat Rusmevichientong,
  Huseyin Topaloglu,
  James Davis
  6 October 2020 | Management Science, Vol. 67, No. 5
- Dynamic Joint Assortment and Pricing Optimization with Demand Learning
  Sentao Miao,
  Xiuli Chao
  30 March 2020 | Manufacturing & Service Operations Management, Vol. 23, No. 2
- Joint pricing strategies of multi-product retailer with reference-price and substitution-price effect
  13 February 2021 | Journal of Data, Information and Management, Vol. 3, No. 1
- Optimal pricing and inventory policies with reference price effect and loss-Averse customers
  Omega, Vol. 99
- Achieving cost efficiency through increased inventory leanness: Evidence from manufacturing industry
  26 March 2021 | Production Engineering Archives, Vol. 27, No. 1
- The Effects of Menu Costs on Retail Performance: Evidence from Adoption of the Electronic Shelf Label Technology
  Ioannis Stamatopoulos,
  Achal Bassamboo,
  Antonio Moreno
  21 May 2020 | Management Science, Vol. 67, No. 1
- Technical Note—On Revenue Management with Strategic Customers Choosing When and What to Buy
  Yiwei Chen,
  Nikolaos Trichakis
  15 December 2020 | Operations Research, Vol. 69, No. 1
- Recent Advances in Integrating Demand Management and Vehicle Routing: Conceptual Framework, Methodological Review, and Research Opportunities
  SSRN Electronic Journal, Vol. 45
- On State-Independent Policies in Network Revenue Management
  SSRN Electronic Journal, Vol. 60
- Demand Management and Inventory Control for Substitutable Products
  SSRN Electronic Journal, Vol. 56
- Regulations for Substitutable Medical Devices
  SSRN Electronic Journal, Vol. 67
- Approximation Schemes for the Joint Inventory Selection and Online Resource Allocation Problem
  SSRN Electronic Journal, Vol. 66
- Dynamic Assortment with Limited Inventories and Set-Dependent Revenue Functions
- Route-based approximate dynamic programming for dynamic pricing in attended home delivery
  European Journal of Operational Research, Vol. 287, No. 2
- Study of optimal order policy for a multi-period multi-raw material inventory management problem under carbon emission constraint
  Computers & Industrial Engineering, Vol. 148
- Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics
  12 October 2020 | Sustainability, Vol. 12, No. 20
- Product line optimisation based on semiparametric choice model
  26 August 2019 | International Journal of Production Research, Vol. 58, No. 18
- Single-period assortment and stock-level decisions for dual sales channels with capacity limits and uncertain demand
  26 November 2019 | International Journal of Production Research, Vol. 58, No. 18
- Product Design Under Multinomial Logit Choices: Optimization of Quality and Prices in an Evolving Product Line
  Hongmin Li,
  Scott Webster,
  Gwangjae Yu
  17 January 2020 | Manufacturing & Service Operations Management, Vol. 22, No. 5
- Capacitated assortment and price optimization under the nested logit model
  14 March 2020 | Journal of Global Optimization, Vol. 77, No. 4
- Efficient food service chain management considering substitute products
  Asia Pacific Journal of Marketing and Logistics, Vol. 33, No. 2
- Dynamic Pricing and Routing for Same-Day Delivery
  Marlin W. Ulmer
  18 June 2020 | Transportation Science, Vol. 54, No. 4
- Dynamic Nonlinear Pricing of Inventories over Finite Sales Horizons
  Guillermo Gallego,
  Michael Z. F. Li,
  Yan Liu
  23 March 2020 | Operations Research, Vol. 68, No. 3
- Pricing Competition Under Specific Discrete Choice Models
  16 March 2020 | Asia-Pacific Journal of Operational Research, Vol. 37, No. 02
- Analysis of two substitute products newsvendor problem with a budget constraint
  Computers & Industrial Engineering, Vol. 140
- The use of product scarcity in marketing
  European Journal of Marketing, Vol. 54, No. 2
- The Future of Retail Operations
  Felipe Caro,
  A. Gürhan Kök,
  Victor Martínez-de-Albéniz
  19 September 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- Optimal Pricing Under Diffusion-Choice Models
  Hongmin Li
  6 January 2020 | Operations Research, Vol. 68, No. 1
- Dynamic Price and Lead Time Quotation Strategies to Match Demand and Supply in Make-to-Order Manufacturing Environments
  14 September 2019
- Show Me the Money: The Economic Impact of Membership-Based Free Shipping Programs on E-Tailers
  SSRN Electronic Journal, Vol. 230
- Welfare Implications of Inventory-Driven Dynamic Pricing
  Ioannis Stamatopoulos,
  Naveed Chehrazi,
  Achal Bassamboo
  24 October 2019 | Management Science, Vol. 65, No. 12
- Mitigating Customers’ Downsell Risk for Single-Leg Revenue Management with Demand Dependencies
- An Approximate Dynamic Programming Approach to Dynamic Pricing for Network Revenue Management
  1 November 2019 | Production and Operations Management, Vol. 28, No. 11
- Pricing Ancillary Service Subscriptions
  Ruxian Wang,
  Maqbool Dada,
  Ozge Sahin
  27 June 2019 | Management Science, Vol. 65, No. 10
- Asymmetric Pricing and Replenishment Controls for Substitutable Products
  5 April 2019 | Decision Sciences, Vol. 50, No. 5
- Design and Dynamic Pricing of Vertically Differentiated Inventories
  Ioannis Stamatopoulos,
  Christos Tzamos
  31 May 2019 | Management Science, Vol. 65, No. 9
- Robust Product Positioning Considering Customer Preferences
  IEEE Systems Journal, Vol. 13, No. 3
- A Unified Framework for Marketing Budget Allocation
  25 July 2019
- Pricing policy selection for a platform providing vertically differentiated services with self-scheduling capacity
  8 December 2018 | Journal of the Operational Research Society, Vol. 70, No. 7
- A Practical Price Optimization Approach for Omnichannel Retailing
  Pavithra Harsha,
  Shivaram Subramanian,
  Markus Ettl
  1 August 2019 | INFORMS Journal on Optimization, Vol. 1, No. 3
- Dynamic Pricing of Limited Inventories with Product Returns
  Xing Hu,
  Zhixi Wan,
  Nagesh N. Murthy
  27 August 2018 | Manufacturing & Service Operations Management, Vol. 21, No. 3
- Technical Note—Dynamic Optimal Policy for an Inventory System of Two Substitutable Products with Positive Replenishment Lead Times
  Youyi Feng,
  Jianjun Xu,
  Shaohui Zheng
  22 May 2019 | Operations Research, Vol. 67, No. 4
- Contract selection for a multi-service sharing platform with self-scheduling capacity
  Omega, Vol. 86
- Optimal Return Policy for Substitute Products in E-commerce Environment
- Coordinating Marketing and Production with Asymmetric Costs: Theory and Estimation
  24 May 2019 | Customer Needs and Solutions, Vol. 6, No. 1-2
- A Concave Value Function Extension for the Dynamic Programming Approach to Revenue Management in Attended Home Delivery
- The Effect of Dynamic Pricing on Holiday Purchase Intentions: Moderated Mediation Role of Perceived Risk
  31 May 2019 | Advances in Hospitality and Tourism Research (AHTR), Vol. 7, No. 1
- Consumer Choice Under Limited Attention When Alternatives Have Different Information Costs
  Frank Huettner,
  Tamer Boyacı,
  Yalçın Akçay
  1 May 2019 | Operations Research, Vol. 67, No. 3
- Inventory Control for a Coproduction System Under Demand Uncertainty
  IEEE Transactions on Automatic Control, Vol. 64, No. 4
- Choice-based dynamic time slot management in attended home delivery
  Computers & Industrial Engineering, Vol. 129
- Optimal price decisions for joint ventures between port operators and shipping lines under the congestion effect
  European Journal of Operational Research, Vol. 273, No. 2
- Product-Line Pricing Under Discrete Mixed Multinomial Logit Demand Winner—2017 M&SOM Practice-Based Research Competition
  Hongmin Li,
  Scott Webster,
  Nicholas Mason,
  Karl Kempf
  16 May 2018 | Manufacturing & Service Operations Management, Vol. 21, No. 1
- Designing and Evaluating Dynamic Pricing Policies for Major League Baseball Tickets
  Joseph Jiaqi Xu,
  Peter S. Fader,
  Senthil Veeraraghavan
  6 February 2019 | Manufacturing & Service Operations Management, Vol. 21, No. 1
- Coordination of Inventory Distribution and Price Markdowns for Clearance Sales at Zara
  16 October 2019
- Optimal Search Segmentation Mechanisms for Online Platform Markets
  3 December 2019
- Quality and pricing decisions in production/inventory systems
  European Journal of Operational Research, Vol. 272, No. 1
- Empirical Evidence of Revenue Management in the Cruise Line Industry
  10 November 2017 | Journal of Travel Research, Vol. 58, No. 1
- Network Revenue Management with Online Inverse Batch Gradient Descent Method
  SSRN Electronic Journal, Vol. 29
- Multi-product Dynamic Pricing with Limited Inventories under Cascade Click Model
  SSRN Electronic Journal, Vol. 27
- Manufacturer Competition Using Supply Functions in a Retail Supply Chain
  SSRN Electronic Journal, Vol. 59
- Convex Optimization for Bundle Size Pricing Problem
  SSRN Electronic Journal, Vol. 28
- Inventory policies for two products under Poisson demand: Interaction between demand substitution, limited storage capacity and replenishment time uncertainty
  19 June 2018 | Naval Research Logistics (NRL), Vol. 65, No. 8
- Analysis of high-speed rail and airline transport cooperation in presence of non-purchase option
  6 September 2018 | Journal of Modern Transportation, Vol. 26, No. 4
- A review of choice-based revenue management: Theory and methods
  European Journal of Operational Research, Vol. 271, No. 2
- A dynamic pricing engine for multiple substitutable flights
  12 April 2018 | Journal of Revenue and Pricing Management, Vol. 17, No. 6
- Technical Note—Multiproduct Pricing Under the Generalized Extreme Value Models with Homogeneous Price Sensitivity Parameters
  Heng Zhang,
  Paat Rusmevichientong,
  Huseyin Topaloglu
  24 July 2018 | Operations Research, Vol. 66, No. 6
- Incorporating Customer Behavior into Operational Decisions
  19 October 2018
- A model-based approximation of opportunity cost for dynamic pricing in attended home delivery
  8 December 2017 | OR Spectrum, Vol. 40, No. 4
- Effectiveness of responsive pricing in the face of supply chain disruptions
  Computers & Industrial Engineering, Vol. 124
- Revenue management and price optimization techniques in the hotel sector
  21 May 2018 | Tourism Economics, Vol. 24, No. 6
- When Prospect Theory Meets Consumer Choice Models: Assortment and Pricing Management with Reference Prices
  Ruxian Wang
  11 May 2018 | Manufacturing & Service Operations Management, Vol. 20, No. 3
- Optimizing conditional value-at-risk in dynamic pricing
  22 March 2018 | OR Spectrum, Vol. 40, No. 3
- High-speed railway competition between China and Japan based on benefits
  10 July 2018 | Journal of Discrete Mathematical Sciences and Cryptography, Vol. 21, No. 4
- Robust Dynamic Pricing with Two Substitutable Products
  Ming Chen,
  Zhi-Long Chen
  14 November 2017 | Manufacturing & Service Operations Management, Vol. 20, No. 2
- Optimal worst-case pricing for a logit demand model with network effects
  Operations Research Letters, Vol. 46, No. 3
- Retail store operations: Literature review and research directions
  European Journal of Operational Research, Vol. 265, No. 2
- Joint pricing and production decisions with yield uncertainty and downconversion
  International Journal of Production Economics, Vol. 197
- Inventory Model with the Consideration of Pricing, Product Substitution and Value Deterioration
  25 August 2018
- On Revenue Management with Strategic Customers Choosing When and What to Buy
  SSRN Electronic Journal, Vol. 56
- Demand Shaping Through Bundling and Product Configuration: A Dynamic Multiproduct Inventory-Pricing Model
  SSRN Electronic Journal, Vol. 28
- Dynamic Joint Assortment and Pricing Optimization With Demand Learning
  SSRN Electronic Journal, Vol. 56
- Price Optimization Under the Finite-Mixture Logit Model
  SSRN Electronic Journal, Vol. 56
- Multi-Product Price Optimization Under a General Cascade Click Model
  SSRN Electronic Journal, Vol. 27
- An approximate dynamic programming approach to attended home delivery management
  European Journal of Operational Research, Vol. 263, No. 3
- Consumer Choice Models with Endogenous Network Effects
  Ruxian Wang,
  Zizhuo Wang
  12 September 2016 | Management Science, Vol. 63, No. 11
- Optimal Pricing of Correlated Product Options Under the Paired Combinatorial Logit Model
  Hongmin Li,
  Scott Webster
  3 July 2017 | Operations Research, Vol. 65, No. 5
- A Nonparametric Joint Assortment and Price Choice Model
  Srikanth Jagabathula,
  Paat Rusmevichientong
  22 July 2016 | Management Science, Vol. 63, No. 9
- Multiproduct price optimization under the multilevel nested logit model
  3 April 2017 | Annals of Operations Research, Vol. 254, No. 1-2
- Optimal production, pricing, and substitution policies in continuous review production-inventory systems
  European Journal of Operational Research, Vol. 260, No. 2
- Supply chain contracting coordination for fresh products with fresh-keeping effort
  Industrial Management & Data Systems, Vol. 117, No. 3
- Multi-period optimization with loss-averse customer behavior: Joint pricing and inventory decisions with stochastic demand
  Expert Systems with Applications, Vol. 72
- Dynamic Pricing for Network Revenue Management: A New Approach and Application in the Hotel Industry
  Dan Zhang,
  Larry Weatherford
  8 November 2016 | INFORMS Journal on Computing, Vol. 29, No. 1
- Pricing Problems Under the Nested Logit Model with a Quality Consistency Constraint
  James M. Davis,
  Huseyin Topaloglu,
  David P. Williamson
  6 December 2016 | INFORMS Journal on Computing, Vol. 29, No. 1
- Assortment Optimization under the Paired Combinatorial Logit Model
  SSRN Electronic Journal, Vol. 57
- Time Window Budgets for Anticipation in Attended Home Delivery
  SSRN Electronic Journal, Vol. 45
- Agent-based simulation of pricing strategy for agri-products considering customer preference
  14 December 2015 | International Journal of Production Research, Vol. 54, No. 13
- When to offer upgrades?
- Optimal Policies for a Two‐Product Inventory System under a Flexible Substitution Scheme
  1 June 2016 | Production and Operations Management, Vol. 25, No. 6
- Yield Management Models for Two Substitutable Products
  Journal of the Korean Operations Research and Management Science Society, Vol. 41, No. 2
- Choice-Based Demand Management and Vehicle Routing in E-Fulfillment
  Xinan Yang,
  Arne K. Strauss,
  Christine S. M. Currie,
  Richard Eglese
  7 August 2014 | Transportation Science, Vol. 50, No. 2
- Mitigating the impact of drug shortages for a healthcare facility: An inventory management approach
  European Journal of Operational Research, Vol. 251, No. 1
- The impact of product substitution and retail capacity on the timing and depth of price promotions: theory and evidence
  13 November 2015 | International Journal of Production Research, Vol. 54, No. 7
- Optimal Pricing for a Multinomial Logit Choice Model with Network Effects
  Chenhao Du,
  William L. Cooper,
  Zizhuo Wang
  25 March 2016 | Operations Research, Vol. 64, No. 2
- The Revenue Impact of Dynamic Pricing Policies in Major League Baseball Ticket Sales
  SSRN Electronic Journal, Vol. 56
- Dynamic Pricing Under Consumer's Sequential Search
  SSRN Electronic Journal, Vol. 55
- When Prospect Theory Meets Consumer Choice Models: Assortment and Pricing Management with Reference Prices
  SSRN Electronic Journal, Vol. 26
- Consumer Choice Under Limited Attention When Options Have Different Information Costs
  SSRN Electronic Journal, Vol. 44
- 'Marginal Estimation+Price Optimization' with Robust Choice Models
  SSRN Electronic Journal, Vol. 56
- Optimal Pricing of Correlated Product Options Under the Paired Combinatorial Logit Model
  SSRN Electronic Journal, Vol. 56
- Pricing under the Generalized Extreme Value Models with Homogeneous Price Sensitivity Parameters
  SSRN Electronic Journal, Vol. 40
- A classification of the literature on the planning of substitutable products
  European Journal of Operational Research, Vol. 246, No. 3
- A dynamic pricing strategy for a 3PL provider with heterogeneous customers
  International Journal of Production Economics, Vol. 169
- Dynamic pricing in a dual‐market environment
  26 October 2015 | Naval Research Logistics (NRL), Vol. 62, No. 7
- A pricing mechanism using social media and web data to infer dynamic consumer valuations
- Technical Note—Pricing Under the Nested Attraction Model with a Multistage Choice Structure
  Woonghee Tim Huh,
  Hongmin Li
  2 July 2015 | Operations Research, Vol. 63, No. 4
- Dynamic pricing and learning: Historical origins, current research, and new directions
  Surveys in Operations Research and Management Science, Vol. 20, No. 1
- Heuristic Production and Sale Policy for a Two-Product-Type Manufacturing System With Downward Substitution
  IEEE Transactions on Systems, Man, and Cybernetics: Systems, Vol. 45, No. 6
- Joint dynamic pricing and inventory control policy for a stochastic inventory system with perishable products
  22 September 2014 | International Journal of Production Research, Vol. 53, No. 10
- Recent Developments in Dynamic Pricing Research: Multiple Products, Competition, and Limited Demand Information
  1 May 2015 | Production and Operations Management, Vol. 24, No. 5
- Approximation Methods for Pricing Problems Under the Nested Logit Model with Price Bounds
  W. Zachary Rayfield,
  Paat Rusmevichientong,
  Huseyin Topaloglu
  15 April 2015 | INFORMS Journal on Computing, Vol. 27, No. 2
- The d-Level Nested Logit Model: Assortment and Price Optimization Problems
  Guang Li,
  Paat Rusmevichientong,
  Huseyin Topaloglu
  3 March 2015 | Operations Research, Vol. 63, No. 2
- Integrating dynamic time-to-market, pricing, production and sales channel decisions
  European Journal of Operational Research, Vol. 242, No. 2
- A game theoretic approach to coordination of pricing, advertising, and inventory decisions in a competitive supply chain
  Journal of Industrial and Management Optimization, Vol. 12, No. 1
- Discount-offering and demand-rejection decisions for substitutable products with different profit levels
  Journal of Industrial and Management Optimization, Vol. 12, No. 1
- Markdown optimization at multiple stores
  10 October 2014 | IIE Transactions, Vol. 47, No. 1
- Dynamic Pricing for Airline Revenue Management under Passenger Mental Accounting
  Mathematical Problems in Engineering, Vol. 2015
- Supply Diversification Under Price Dependent Demand and Random Yield
  SSRN Electronic Journal, Vol. 66
- Constrained Assortment Optimization for the Nested Logit Model
  Guillermo Gallego,
  Huseyin Topaloglu
  16 July 2014 | Management Science, Vol. 60, No. 10
- Inventory management with simultaneously horizontal and vertical substitution
  International Journal of Production Economics, Vol. 156
- Quantity Premiums and Discounts in Dynamic Pricing
  Yuri Levin,
  Mikhail Nediak,
  Andrei Bazhanov
  4 June 2014 | Operations Research, Vol. 62, No. 4
- Joint optimization of pricing and ordering for two substitute products with a budget constraint
- Multiproduct Price Optimization and Competition Under the Nested Logit Model with Product-Differentiated Price Sensitivities
  Guillermo Gallego,
  Ruxian Wang
  31 March 2014 | Operations Research, Vol. 62, No. 2
- Assortment Optimization Under Variants of the Nested Logit Model
  James M. Davis,
  Guillermo Gallego,
  Huseyin Topaloglu
  27 March 2014 | Operations Research, Vol. 62, No. 2
- Dynamic pricing vs. acquiring information on consumers’ heterogeneous sensitivity to product freshness
  15 October 2013 | International Journal of Production Research, Vol. 52, No. 3
- Cooperative game analysis of retail space-exchange problems
  European Journal of Operational Research, Vol. 232, No. 2
- Optimal Pricing for a Multinomial Logit Choice Model with Network Effects
  SSRN Electronic Journal, Vol. 40
- Consumer Choice Models with Endogenous Network Effects
  SSRN Electronic Journal, Vol. 64
- Multiproduct Price Optimization Under the Multilevel Nested Logit Model
  SSRN Electronic Journal, Vol. 56
- Online retailers’ promotional pricing, free-shipping threshold, and inventory decisions: A simulation-based analysis
  European Journal of Operational Research, Vol. 230, No. 2
- Assortment management under the generalized attraction model with a capacity constraint
  19 October 2012 | Journal of Revenue and Pricing Management, Vol. 12, No. 3
- Assessing the Value of Dynamic Pricing in Network Revenue Management
  Dan Zhang,
  Zhaosong Lu,
  7 December 2011 | INFORMS Journal on Computing, Vol. 25, No. 1
- A Two-Stage Model of Consideration Set and Choice: Learning, Revenue Prediction, and Applications
  SSRN Electronic Journal, Vol. 22
- Dynamic Pricing and Learning: Historical Origins, Current Research, and New Directions
  SSRN Electronic Journal, Vol. 24
- Clearance Pricing Optimization for a Fast-Fashion Retailer
  Felipe Caro,
  Jérémie Gallien,
  1 December 2012 | Operations Research, Vol. 60, No. 6
- Capacity commitment and pricing for substitutable products under competition
  13 December 2012 | Journal of Systems Science and Systems Engineering, Vol. 21, No. 4
- Optimal dynamic return management of fixed inventories
  28 September 2012 | Journal of Revenue and Pricing Management, Vol. 11, No. 6
- Dynamic pricing of high-speed rail with transport competition
  14 October 2011 | Journal of Revenue and Pricing Management, Vol. 11, No. 5
- The Value of Product Variety When Selling to Strategic Consumers
  Ali K. Parlaktürk,
  18 May 2012 | Manufacturing & Service Operations Management, Vol. 14, No. 3
- A consumer choice behavior model for the substitutable products
- Product line pricing for services with capacity constraints and dynamic substitution
  European Journal of Operational Research, Vol. 219, No. 2
- Sourcing from Multiple Suppliers for Price‐Dependent Demands
  1 May 2012 | Production and Operations Management, Vol. 21, No. 3
- Dynamic pricing in the presence of consumer inertia
  Omega, Vol. 40, No. 2
- Design and Operating for the Logistics Systems
  3 January 2012 | Advanced Materials Research, Vol. 433-440
- Multi-Agent Based Logistics Coordination System
  3 January 2012 | Advanced Materials Research, Vol. 433-440
- Optimizing the end-to-end value chain through demand shaping and advanced customer analytics
- Pricing Decisions During Inter‐Generational Product Transition
  1 January 2012 | Production and Operations Management, Vol. 21, No. 1
- Assortment Management under the Generalized Attraction Model with a Capacity Constraint
  SSRN Electronic Journal, Vol. 40
- Pricing Multiple Products with the Multinomial Logit and Nested Logit Models: Concavity and Implications
  Hongmin Li,
  Woonghee Tim Huh,
  9 August 2011 | Manufacturing & Service Operations Management, Vol. 13, No. 4
- Optimal pricing and production decisions in the presence of symmetrical and asymmetrical substitution
  Omega, Vol. 39, No. 5
- Optimal Control of Replenishment and Substitution in an Inventory System with Nonstationary Batch Demand
  1 September 2011 | Production and Operations Management, Vol. 20, No. 5
- Multi-Product Price Optimization and Competition Under the Nested Logit Model with Product-Differentiated Price Sensitivities
  SSRN Electronic Journal, Vol. 56
- Dynamic Pricing of Perishable Products under Consumer Factor
  Journal of Service Science and Management, Vol. 04, No. 04
- Joint Dynamic Pricing of Multiple Perishable Products Under Consumer Choice
  Yalçın Akçay,
  Harihara Prasad Natarajan,
  Susan H. Xu,
  28 May 2010 | Management Science, Vol. 56, No. 8
- Joint Pricing and Contingent Free‐Shipping Decisions in B2C Transactions
  1 July 2010 | Production and Operations Management, Vol. 19, No. 4
- A review of marketing–operations interface models: From co-existence to coordination and collaboration
  International Journal of Production Economics, Vol. 125, No. 1
- Dynamic Pricing of Seasonal Product without Replenishment: A Discrete Time Analysis
  8 January 2010
- Suitable optimized design mechanisms and effective operating method for major retailing logistics management
- Flexible and responsive multi-agent based logistics coordination management
- Logistics supply chain coordination based on multi-agent system
- Combinatorial optimization design and operating management mechanisms for logistics supply chain management
- Clearance Pricing Optimization for a Fast-Fashion Retailer
  SSRN Electronic Journal, Vol. 1
- A Review of Marketing-Operations Interface Models: From Co-Existence to Coordination and Collaboration
  SSRN Electronic Journal, Vol. 50

cover image Manufacturing & Service Operations Management

Volume 11, Issue 2

Spring 2009

Pages 191-372

Article Information

Supplemental Material

Metrics

Information

Received:December 12, 2007
Accepted:February 20, 2008
Published Online:August 05, 2008

Cite as

Lingxiu Dong, Panos Kouvelis, Zhongjun Tian, (2008) Dynamic Pricing and Inventory Control of Substitute Products. Manufacturing & Service Operations Management 11(2):317-339.

https://doi.org/10.1287/msom.1080.0221

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Dynamic Pricing and Inventory Control of Substitute Products

Supplemental Material

Volume 11, Issue 2

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News