TY - JOUR
T1 - Pricing, replenishment, and timing of selling in a market with heterogeneous customers
AU - Anily, Shoshana
AU - Hassin, Refael
PY - 2013/10
Y1 - 2013/10
N2 - We consider a deterministic pricing and replenishment model in which the retailer advertises a fixed price and the selling schedule, and customers can advance or delay their time of purchase incurring holding or shortage costs. We investigate the impact of heterogeneity in the customers' reservation prices. We show that the resulting optimal solution may be very different from that obtained when customers are homogeneous. We identify nine types of possible optimal sales strategies, and compute their profits. In particular, the solution may contain sales at several discrete points of time between consecutive replenishment epochs with no sales between them.
AB - We consider a deterministic pricing and replenishment model in which the retailer advertises a fixed price and the selling schedule, and customers can advance or delay their time of purchase incurring holding or shortage costs. We investigate the impact of heterogeneity in the customers' reservation prices. We show that the resulting optimal solution may be very different from that obtained when customers are homogeneous. We identify nine types of possible optimal sales strategies, and compute their profits. In particular, the solution may contain sales at several discrete points of time between consecutive replenishment epochs with no sales between them.
KW - Pricing
KW - Replenishment policies
KW - Strategic customers
UR - http://www.scopus.com/inward/record.url?scp=84883458684&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2013.05.021
DO - 10.1016/j.ijpe.2013.05.021
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AN - SCOPUS:84883458684
SN - 0925-5273
VL - 145
SP - 672
EP - 682
JO - International Journal of Production Economics
JF - International Journal of Production Economics
IS - 2
ER -