Dynamic Pricing and Inventory Management Under Inventory-Dependent Demand

@article{Yang2014DynamicPA,
  title={Dynamic Pricing and Inventory Management Under Inventory-Dependent Demand},
  author={Nan Yang and Renyu (Philip) Zhang},
  journal={Oper. Res.},
  year={2014},
  volume={62},
  pages={1077-1094}
}
We analyze a finite horizon periodic review joint pricing and inventory management model for a firm that replenishes and sells a product under the scarcity effect of inventory. The demand distribution in each period depends negatively on the sales price and customer-accessible inventory level at the beginning of the period. The firm can withhold or dispose of its on-hand inventory to deal with the scarcity effect. We show that a customer-accessible-inventory-dependent order-up-to/dispose-down… 

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