scholarly journals Scale economies with regard to price adjustment costs and the speed of price adjustment in Australian manufacturing

2008 ◽  
Vol 22 (1) ◽  
pp. 63-75 ◽  
Author(s):  
Michael Olive
Keyword(s):  
Scale Economies ◽  
Adjustment Costs ◽  
Price Adjustment

Price Adjustment Costs and the Output-Inflation Trade-off

Economica ◽  
1986 ◽  
Vol 53 (210) ◽  
pp. 219 ◽  
Author(s):  
Howard F. Naish
Keyword(s):  
Adjustment Costs ◽  
Price Adjustment ◽  
Trade Off

Menu Costs and the Bullwhip Effect: Supply Chain Implications of Dynamic Pricing

2021 ◽  
Author(s):  
Robert L. Bray ◽  
Ioannis Stamatopoulos
Keyword(s):  
Supply Chain ◽  
Dynamic Pricing ◽  
Adjustment Costs ◽  
Empty Space ◽  
Bullwhip Effect ◽  
Price Adjustment ◽  
Grocery Stores ◽  
Menu Costs ◽  
Overtime Work ◽  
The Difference

Suppose that technology reduces price-adjustment costs (e.g., the costs of printing and changing price tags), and as a result prices at grocery stores change more dynamically. Will this change mean less stability or more stability for grocery supply chains? In other words, will more dynamic pricing downstream mean more last-minute purchases, more overtime work, and more empty space in trucks and warehouses? Or will it mean more regular and more standardized orders, smoother schedules, and less waste? To answer this question, we fit a pricing and ordering model to data from a large Chinese supermarket chain (daily prices, sales, inventories, and shipments from products from seven categories at 78 stores for 3.5 years) and then simulate a counterfactual grocery chain in which the estimated price-adjustment costs are set to zero. We find that the removal of price-adjustment costs stabilizes the supply chain, reducing both its shipment volatility, its sales volatility, and its bullwhip (the difference between the shipment and sales volatility).

VARIABLE PRICE ADJUSTMENT COSTS

1993 ◽  
Vol 31 (3) ◽  
pp. 488-498 ◽  
Author(s):  
Jerzy D. Konieczny
Keyword(s):  
Adjustment Costs ◽  
Price Adjustment
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