Authors: Yigal Gerchak
Addresses: Department of Industrial Engineering, Tel-Aviv University, Israel
Abstract: A retailer sets prices, as well as, simultaneously, selects quantities to order from the supplier. We consider a two-period setting where the second period's demand depends on the first period's ('reference') price, as well as on the second period price. We consider a linear-additive demand function as well as a novel iso-elastic multiplicative model.
Keywords: inventory control; reference price; stochastic demand.
International Journal of Inventory Research, 2018 Vol.5 No.1, pp.29 - 37
Received: 15 Mar 2017
Accepted: 02 Jun 2017
Published online: 28 May 2018 *