Title: Joint pricing and inventory control modelling for obsolescent products: a case study of the telecom industry
Authors: Mohammad Reza Sadeghi Moghadam; Isa Nakhai Kamalabadi; Bahareh Karbasian
Addresses: Department of Industrial Management, Faculty of Management, University of Tehran, Jalal Al-e-Ahmad Ave., 14179-63193, Tehran, Iran ' Department of Engineering, University of Kurdistan, Pasdaran Blvd., Post Box No. 416, Sanandaj, Iran ' Department of Industrial Management, University of Tehran, Kish International Campus, Niyayesh St., Mirmohanna Blvd., 79416-55665, Kish Island, Iran
Abstract: The current pricing context calls for better, faster and more precise pricing decision makings than ever before. These in turn, oblige companies to take a new stance with respect to the role of pricing in today's overwhelming and complex marketing context. Similarly, decisions related to inventory control and types of goods are strongly linked to pricing as well. The aim of this paper is to present a mathematical programming model for joint inventory control and pricing for the bundling of obsolescent items. To this end, a mathematical programming model was developed following a comprehensive review of the literature in this area. The validity of the proposed model was then tested in the telecommunications industry as a case study. According to the obtained results, the proposed model had a fairly good validity.
Keywords: inventory control; pricing; obsolescent product; mathematical programming; telecom; bundling.
International Journal of Applied Decision Sciences, 2019 Vol.12 No.4, pp.375 - 401
Available online: 07 May 2019 *Full-text access for editors Access for subscribers Purchase this article Comment on this article