Zero Ending Inventory Dynamic Pricing Model under Stochastic Demand, Fixed Lifetime Product, and Fixed Order Quantity

Abstract We consider a perishable product with a fixed shelf life under fixed-order quantity policy. The demand is a compound Poisson process with a price sensitive intensity and a continuous batch size distribution. A model of retail price control is proposed allowing us to sell a lot without leftovers almost surely during the product’s lifetime. A diffusion approximation of the demand process is used to find the probabilistic characteristics of the selling process and the expected revenue.

• Publication year

  2019

• Venue

  IFAC-PapersOnLine

• Publication date

  Unknown publication date

• Fields of study

  Mathematics, Business

• Identifiers
  DOI 10.1016/j.ifacol.2019.11.579
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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