Authors: Yue Dai ShuCherng Fang Xiaoli Ling Henry L W Nuttle
Publish Date: 2008/01/11
Volume: 67, Issue: 3, Pages: 391-421
Abstract
This paper studies a nonstationary inventory and pricing problem We consider a twoechelon supply chain with one supplier and two retailers in which the supplier carries all inventory to supply the retailers Both the reserved and pooled inventory systems are analyzed Results with normally distributed demands are compared Assuming the random demand at each retailer is pricesensitive we further consider the cases when the retailers have and do not have service level requirements We start with analyzing inventory and pricing strategies for the supplier in a oneperiod scenario Then we extend our analysis to both the backlogging and lostsale scenarios in an infinite planning horizonThe first author’s research is sponsored by Grant No 70502009 and No 70432001 of the Chinese National Natural Science Foundation and the second author’s research is sponsored by Grant W911NF04D0003 of the US Army Research Office and Grant DMI0553310 of the US National Science Foundation
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