- Series Information
- List of Figures
- List of Tables
- List of Boxes
- List of Contributors
- Why Are Prices Set the Way They Are?
- Airline Pricing
- Electric Power Pricing
- Health Care Pricing in the United States: The Case of Hospitals
- Pricing in Restaurants
- Pricing of On-line Display Advertising
- Consumer Credit Pricing
- Wireless Services Pricing in the United States
- For What IT’s Worth: Pricing Internal IT Services
- Television Advertisement Pricing in the United States
- Pricing in the Cruise Line Industry
- Less-than-Truckload Pricing
- Pricing in the North American Protein Industry
- Wine Pricing in the United States
- Pricing and sales practices at the Grand Bazaar of İstanbul
- Price Theory in Economics
- Models of Demand
- Game Theory Models of Pricing
- Behavioral Issues in Pricing Management
- Customized Pricing
- Nonlinear Pricing
- Dynamic List Pricing
- Sales Promotions
- Markdown Management
- Revenue Management
- Auction Pricing
- Services Engineering: Design and Pricing of Service Features
- Pricing in Business-to-Business Contracts: Sharing Risk, Profit, and Information
- Pricing and Inventory Management
- Structuring and Managing an Effective Pricing Organization
- Global Pricing Strategy
- Using Lean Six Sigma to Improve Pricing Execution
- Mastering your Profit Destiny in Business-to-Business Settings
- Current Challenges and Future Prospects for Pricing Management
Abstract and Keywords
This article surveys academic research on price optimization models in which inventory replenishment plays a critical role. The emphasis is on integrated production/inventory and pricing models with the potential to be used for decision support at both the operational and the tactical levels. The article also reviews strategic models on supply chain competition, coordination, and cooperation built upon these operational and tactical inventory and pricing models. It is organized as follows. The article presents commonly used demand models, which is followed by a survey of deterministic periodic review inventory and pricing models. It then presents stochastic models distinguishing between single period models, multi-period models with convex ordering costs, and multi-period models with concave ordering costs. Built upon the inventory and pricing models presented in the previous sections, the article reviews models on supply chain competition, coordination, and cooperation. Finally, it provides some concluding remarks and thoughts on future research.
Xin Chen is an Associate Professor at the Department of Industrial and Enterprise Systems Engineering at the University of Illinois at Urbana-Champaign. His research interests include supply chain management, inventory management, and optimization. He is co-author of the book The Logic of Logistics (Springer, 2005).
David Simchi-Levi is Professor of Engineering Systems at MIT. His research focuses on developing and implementing robust and efficient techniques for logistics and manufacturing systems. He has published widely in professional journals on both practical and theoretical aspects of logistics and supply chain management. Professor Simchi-Levi co-authored the books Managing the Supply Chain (McGraw-Hill, 2004), The Logic of Logistics (Springer, 2005), as well as the award-winning Designing and Managing the Supply Chain (McGraw-Hill, 2007). His new book Operations Rules: Delivering Customer Value through Flexible Operations was published by MIT Press in September 2010. Professor Simchi-Levi has consulted and collaborated extensively with private and public organizations. He is the founder of LogicTools (now part of IBM), which provides software solutions and professional services for supply chain planning.
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