Dynamic pricing in the newsvendor problem with yield risks

被引:42
|
作者
Tang, Ou [1 ,2 ]
Musa, S. Nurmaya [1 ]
Li, Juan [3 ]
机构
[1] Linkoping Univ, Dept Management & Engn, SE-58183 Linkoping, Sweden
[2] Tongji Univ, Sch Econ & Management, Shanghai 200092, Peoples R China
[3] Nanjing Univ, Sch Management & Engn, Nanjing 210093, Jiangsu, Peoples R China
基金
中国国家自然科学基金;
关键词
Yield risk; Dynamic pricing; Supply chain risk management; Newsvendor problem; INVENTORY CONTROL; STOCHASTIC DEMAND; DECISIONS; POLICIES; SUBSTITUTION; POSTPONEMENT; PRODUCTS; CAPACITY; SYSTEMS; IMPACT;
D O I
10.1016/j.ijpe.2011.01.018
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
Nowadays supply chains are facing challenges in managing risk issues. Supply of raw materials may exhibit a random yield due to technical failure of production resources or supply disruption after a natural disaster. In case supply has a random yield, one way to reduce supply chain loss is by introducing a dynamic pricing policy, with the aim of manipulating demand in the market while inducing the customer to buy substitute products temporarily. This paper investigates newsvendor problem with random demand and random yields, in which the price decision will be postponed and determined upon recognition of random yield and prior to realising demand uncertainties. With the objective of maximising expected profits, we develop the optimal price and ordering decisions in the system, while comparing the system's performances with dynamic and fixed pricing policies. Further, we investigate the conditions of adapting dynamic pricing policy. An interesting finding shows that such a policy brings increase in benefit when demand uncertainty is small. The outcome of this research provides alternative solutions in designing a robust supply chain. (C) 2011 Elsevier B.V. All rights reserved.
引用
收藏
页码:127 / 134
页数:8
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