The price-setting limited clearance sale inventory model

  title={The price-setting limited clearance sale inventory model},
  author={Indranil Biswas and Balram Avittathur},
  journal={Annals of Operations Research},
The classical newsvendor problem decides the optimal order quantity for a single period, with the assumptions that both the selling price and the end of period salvage value are fixed. However, the salvage value or clearance price in many instances depends on the leftover inventory. A fixed salvage value assumption could lead to suboptimal decisions in many situations. In this paper we determine the optimal pricing and ordering decision for a limited clearance sale inventory model using… 
Optimal Ordering Strategy for Goods at Multiple Retail Prices under Simultaneous Sales
To stimulate purchases from consumers, retailers nowadays use the multiple retail prices strategy (MRPS), i.e., selling the products at multiple prices simultaneously. The paper extends the current
Indian Institute of Management Calcutta Working Paper Series WPS No 815 / November , 2018 Financially Constrained Limited Clearance Sale Inventory Model
Recent rise in bank borrowing by retailers indicates that they are cash constrained and are unable to purchase their optimal order quantity on their own. The retailer's problem is further complicated
The price-setting newsvendor: review and extensions
A relatively unexplored model is extended describing a price-setting newsvendor faced with a fixed stock level to show that there is a unique optimising price and that the optimal price depends heavily on the form of the demand uncertainty.
Price and Quantity Promotions for Clearance Sales
Retailers often offer price and quantity promotions to customers during clearance sales. In a price promotion, they offer discounted unit prices. In a quantity promotion, they usually offer a


Managing Clearance Sales in the Presence of Strategic Customers
We study the effect of strategic customer behavior on pricing and rationing decisions of a firm selling a single product over two periods. The seller may limit the availability of the product (that
Dynamic pricing in a dual‐market environment
This article is concerned with the determination of pricing strategies for a firm that in each period of a finite horizon receives replenishment quantities of a single product which it sells in two
Impact of Uncertainty and Risk Aversion on Price and Order Quantity in the Newsvendor Problem
A single-period inventory model in which a risk-averse retailer faces uncertain customer demand and makes a purchasing-order-quantity and a selling-price decision with the objective of maximizing expected utility is considered, providing a better understanding of retailers' pricing behavior.
Periodic Pricing of Seasonal Products in Retailing
This paper studies intertemporal pricing policies when selling seasonal products in retail stores. We first present a continuous time model where a seller faces a stochastic arrival of customers with
Clearance Pricing Optimization for a Fast-Fashion Retailer
In collaboration with Zara, this work designed and implemented an alternative process relying on a formal forecasting model feeding a price optimization model for determining price markdowns, and is currently using worldwide for its markdown decisions during clearance sales.
Supply Chain Coordination with Contracts
Implementation of the Newsvendor Model with Clearance Pricing: How to (and How Not to) Estimate a Salvage Value
The results highlight the importance of understanding how a model can interact with its own inputs: when inputs to a model are influenced by the decisions of the model, care is needed to appreciate how that interaction influences the decisions recommended by the model and how the model's inputs should be estimated.