scholarly journals A Joint Dynamic Pricing, Advertising, and Production Model with Inventory-Level-Dependent Goodwill

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yongzhao Wang ◽  
Liqun Wei ◽  
Jianxiong Zhang
Keyword(s):  
Dynamic Pricing ◽  
Production Model ◽  
Inventory Level ◽  
System Parameters ◽  
Decision Making Problem ◽  
Demand Rate ◽  
Building Factors ◽  
Optimal Dynamic ◽  
The Impact ◽  
Production Decision

Inventory level has a significant impact on the goodwill of products to customers, which seldom becomes the focus of previous studies. In this paper, joint dynamic pricing, advertising, and production decision-making problem is investigated, where the demand rate depends on sales price and goodwill. The inventory and backlog as well as advertisement are considered as goodwill-building factors. The optimal dynamic pricing, advertising, and production policies are derived by using Pontryagin’s maximum principle. Numerical examples are provided to demonstrate the obtained results, and sensitivity analysis of main system parameters is carried out to obtain some managerial insights. We find that when the initial goodwill is relatively high, the firm’s profit first decreases and then increases with respect to the impact intensity of inventory on goodwill; otherwise, the firm always benefits from a higher impact intensity of inventory on goodwill. Furthermore, the optimal production and advertising policies are complementary caused by the feature of inventory-dependent goodwill.

Model Predictive Control of a Forecasting Production System with Deteriorating Items

2015 ◽  
Vol 6 (4) ◽  
pp. 19-37 ◽  
Author(s):  
Abdelhak Mezghiche ◽  
Mustapha Moulaï ◽  
Lotfi Tadj
Keyword(s):  
Model Predictive Control ◽  
Predictive Control ◽  
Production System ◽  
Objective Function Value ◽  
Inventory Level ◽  
Optimal Production ◽  
Control Approach ◽  
System Parameters ◽  
Demand Rate ◽  
Optimal Inventory Level

The authors consider in this paper an integrated forecasting production system of the tracking type. The demand rate during a certain period depends on the demand rate of the previous period. Also, the demand rate depends on the inventory level. Items on the shelves are subject to deterioration. Using a model predictive control approach, the authors obtain the optimal production rate, the optimal inventory level, the optimal demand rate, and the optimal objective function value, explicitly in terms of the system parameters. A numerical example is presented.

scholarly journals Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-12 ◽  
Author(s):  
Qi Chen ◽  
Qi Xu ◽  
Wenjie Wang
Keyword(s):  
Dynamic Pricing ◽  
Price Policy ◽  
Pricing Strategy ◽  
Sensitivity Analyses ◽  
Pricing Strategies ◽  
System Parameters ◽  
Optimal Dynamic ◽  
Replenishment Cycle ◽  
Fashion Apparel ◽  
Short Product

Fashion apparel, with short product lifecycles and highly volatile demand, requires careful attention during both the initial ordering periods before the selling season and during the selling season, with its decisions regarding price and replenishment. Using Pontryagin’s maximum principle method, this study investigates the problem of the dynamic pricing strategy and replenishment cycle for fashion apparel by considering the effect of fashion level on demand. First, we provide a framework for fashion apparel by formulating a model that includes both price and demand at different fashion levels. We then provide an algorithm to derive the optimal dynamic pricing strategy and replenishment cycle. Numerical examples and sensitivity analyses of the main system parameters are provided to demonstrate the obtained results, which form the basis for managerial insights. It is shown that the apparel retailer has three types of optimal dynamic pricing strategies and that the optimal strategy is independent of the replenishment cycle. The apparel retailer is able to realize the profit advantage of a continuously variable price policy by adjusting the sales price periodically.

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

scholarly journals Impact of the Generation System Parameters on the Frequency Response of the Power System: A UK Grid Case Study

Electricity ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 143-157
Author(s):  
Jovi Atkinson ◽  
Ibrahim M. Albayati
Keyword(s):  
Power System ◽  
Frequency Response ◽  
Power Grid ◽  
Sudden Increase ◽  
Generation System ◽  
System Parameters ◽  
Primary Frequency ◽  
Primary Frequency Response ◽  
The Impact ◽  
System Inertia

The operation and the development of power system networks introduce new types of stability problems. The effect of the power generation and consumption on the frequency of the power system can be described as a demand/generation imbalance resulting from a sudden increase/decrease in the demand and/or generation. This paper investigates the impact of a loss of generation on the transient behaviour of the power grid frequency. A simplified power system model is proposed to examine the impact of change of the main generation system parameters (system inertia, governor droop setting, load damping constant, and the high-pressure steam turbine power fraction), on the primary frequency response in responding to the disturbance of a 1.32 GW generation loss on the UK power grid. Various rates of primary frequency responses are simulated via adjusting system parameters of the synchronous generators to enable the controlled generators providing a fast-reliable primary frequency response within 10 s after a loss of generation. It is concluded that a generation system inertia and a governor droop setting are the most dominant parameters that effect the system frequency response after a loss of generation. Therefore, for different levels of generation loss, the recovery rate will be dependent on the changes of the governor droop setting values. The proposed model offers a fundamental basis for a further investigation to be carried on how a power system will react during a secondary frequency response.

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

scholarly journals A new method of inferring the size, number density, and charge of mesospheric dust from its in situ collection by the DUSTY probe

2019 ◽  
Vol 12 (3) ◽  
pp. 1673-1683 ◽  
Author(s):  
Ove Havnes ◽  
Tarjei Antonsen ◽  
Gerd Baumgarten ◽  
Thomas W. Hartquist ◽  
Alexander Biebricher ◽  
...  
Keyword(s):  
New Method ◽  
Production Model ◽  
Dust Particles ◽  
Bottom Plate ◽  
Charged Dust ◽  
Fundamental Parameters ◽  
Dust Charge ◽  
Analysis Technique ◽  
June July ◽  
The Impact

Abstract. We present a new method of analyzing measurements of mesospheric dust made with DUSTY rocket-borne Faraday cup probes. It can yield the variation in fundamental dust parameters through a mesospheric cloud with an altitude resolution down to 10 cm or less if plasma probes give the plasma density variations with similar height resolution. A DUSTY probe was the first probe that unambiguously detected charged dust and aerosol particles in the Earth's mesosphere. DUSTY excluded the ambient plasma by various biased grids, which however allowed dust particles with radii above a few nanometers to enter, and it measured the flux of charged dust particles. The flux measurements directly yielded the total ambient dust charge density. We extend the analysis of DUSTY data by using the impact currents on its main grid and the bottom plate as before, together with a dust charging model and a secondary charge production model, to allow the determination of fundamental parameters, such as dust radius, charge number, and total dust density. We demonstrate the utility of the new analysis technique by considering observations made with the DUSTY probes during the MAXIDUSTY rocket campaign in June–July 2016 and comparing the results with those of other instruments (lidar and photometer) also used in the campaign. In the present version we have used monodisperse dust size distributions.

scholarly journals A finite horizon production model with variable production rates and constant demand rate

2002 ◽  
Vol 6 (2) ◽  
pp. 71-78 ◽  
Author(s):  
Zvi Goldstein
Keyword(s):  
Production Rate ◽  
Finite Horizon ◽  
Production Model ◽  
Maximum Speed ◽  
Lot Size ◽  
Production Problem ◽  
Demand Rate ◽  
The Cost ◽  
Production Lot Size ◽  
Variable Production

In this paper we present a finite horizon single product single machine production problem. Demand rate and all the cost patterns do not change over time. However, end of horizon effects may require production rate adjustments at the beginning of each cycle. It is found that no such adjustments are required. The machine should be operated either at minimum speed (i.e. production rate = demand rate; shortage is not allowed), avoiding the buildup of any inventory, or at maximum speed, building up maximum inventories that are controlled by the optimal production lot size.

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