DYNAMIC PRICING AND INVENTORY CONTROL FOR A PRODUCTION SYSTEM WITH AVERAGE PROFIT CRITERION

2009 ◽  
Vol 23 (3) ◽  
pp. 489-513 ◽  
Author(s):  
Yifan Xu ◽  
Xiuli Chao
Keyword(s):  
Production System ◽  
Dynamic Pricing ◽  
Production Control ◽  
Control Policy ◽  
Joint Optimization ◽  
Sale Price ◽  
Bisection Algorithm ◽  
Long Run ◽  
Optimal Dynamic ◽  
Make To Stock

In this article we study the joint optimization of finished goods inventory and pricing in a make-to-stock production system with long-run average profit criterion. The production time is random with controllable rate and the demand is Markovian with rate depending on the sale price. The objective is to dynamically adjust the production rate and the sale price to maximize the long-run average profit. We obtain the optimal dynamic pricing and production control policy and present an efficient bisection algorithm for computing the policy parameters.

Optimal dynamic pricing for an electricity retailer in the price-responsive environment of smart grid

2021 ◽  
Vol 130 ◽  
pp. 107004
Author(s):  
Hossein Taherian ◽  
Mohammad Reza Aghaebrahimi ◽  
Luis Baringo ◽  
Saeid Reza Goldani
Keyword(s):  
Smart Grid ◽  
Dynamic Pricing ◽  
Optimal Dynamic

Existence and uniqueness of optimal dynamic pricing and advertising controls without concavity

2018 ◽  
Vol 46 (2) ◽  
pp. 199-204 ◽  
Author(s):  
Bertrand Crettez ◽  
Naila Hayek ◽  
Georges Zaccour
Keyword(s):  
Dynamic Pricing ◽  
Existence And Uniqueness ◽  
Optimal Dynamic

OPTIMAL PRICING AND PRODUCTION POLICIES OF A MAKE-TO-STOCK SYSTEM WITH FLUCTUATING DEMAND

2009 ◽  
Vol 23 (2) ◽  
pp. 205-230 ◽  
Author(s):  
Jean-Philippe Gayon ◽  
Işılay Talay-Değirmenci ◽  
Fikri Karaesmen ◽  
E. Lerzan Örmeci
Keyword(s):  
Dynamic Pricing ◽  
Numerical Study ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Policy ◽  
Stock Level ◽  
Production Inventory ◽  
Static Pricing ◽  
Make To Stock ◽  
Production Inventory System

We study the effects of different pricing strategies available to a production–inventory system with capacitated supply, which operates in a fluctuating demand environment. The demand depends on the environment and on the offered price. For such systems, three plausible pricing strategies are investigated: static pricing, for which only one price is used at all times, environment-dependent pricing, for which price changes with the environment, and dynamic pricing, for which price depends on both the current environment and the stock level. The objective is to find an optimal replenishment and pricing policy under each of these strategies. This article presents some structural properties of optimal replenishment policies and a numerical study that compares the performances of these three pricing strategies.

scholarly journals A Flexible Service Rule for the Dynamic Make-to-Stock/Make-to-order Hybrid Production System

2015 ◽  
Vol 2 ◽  
pp. 46-50
Author(s):  
Shohei Kanda ◽  
Katsuhiko Takahashi ◽  
Katsumi Morikawa
Keyword(s):  
Production System ◽  
Hybrid Production ◽  
Make To Order ◽  
Make To Stock

An Optimal Dynamic Program of Talent Attraction and Development

2017 ◽  
pp. 75-103
Author(s):  
Asma Raies
Keyword(s):  
Acquisition Rate ◽  
Training Activity ◽  
Average Efficiency ◽  
Comparative Dynamics ◽  
Worker Training ◽  
Long Run ◽  
Constant Rate ◽  
Short Run ◽  
Optimal Dynamic ◽  
Talent Acquisition

This chapter develops a dynamic model which studies the firm's optimal strategy of talent attraction and development. It shows that the firm should start out with a high talent acquisition rate and low training rate. As more and more high talented workers are hired, the firm becomes more competitive, its profit increases and it begins investing in research and worker training to improve more its productivity. By doing, the firm contributes to the pool of public knowledge. These inter temporal spillovers allow the firm's efficiency to grow in the steady state. This is reached when talent acquisition peters out and the firm settles into a stable situation where its average efficiency grows at a constant rate due to the training activity only. The comparative dynamics and numerical simulations sections show that attracting the most efficient talents, reducing the talent acquisition cost and encouraging researchers and trainers through increasing their wage, improve the firm's average efficiency growth in both short run and long run.

Sign in / Sign up

Export Citation Format

Share Document