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A note on “A multi-period profit maximizing model for retail supply chain management”

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  • van den Heuvel, Wilco
  • Wagelmans, Albert P.M.

Abstract

In this note we present an efficient exact algorithm to solve the joint pricing and inventory problem for which Bhattacharjee and Ramesh (2000) proposed two heuristics. The algorithm is based on a method proposed by Thomas (1970) and we show additional properties which can be used to arrive at an even more efficient algorithm. Furthermore, we point out several shortcomings in the paper by Bhattacharjee and Ramesh.

Suggested Citation

  • van den Heuvel, Wilco & Wagelmans, Albert P.M., 2017. "A note on “A multi-period profit maximizing model for retail supply chain management”," European Journal of Operational Research, Elsevier, vol. 260(2), pages 625-630.
    • Handle: RePEc:eee:ejores:v:260:y:2017:i:2:p:625-630
    DOI: 10.1016/j.ejor.2017.01.014
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    References listed on IDEAS

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    1. Shiming Deng & Candace A. Yano, 2006. "Joint Production and Pricing Decisions with Setup Costs and Capacity Constraints," Management Science, INFORMS, vol. 52(5), pages 741-756, May.
    2. Joseph Geunes & H. Edwin Romeijn & Kevin Taaffe, 2006. "Requirements Planning with Pricing and Order Selection Flexibility," Operations Research, INFORMS, vol. 54(2), pages 394-401, April.
    3. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    4. Joseph Thomas, 1970. "Price-Production Decisions with Deterministic Demand," Management Science, INFORMS, vol. 16(11), pages 747-750, July.
    5. James B. Orlin, 1985. "Technical Note—Some Very Easy Knapsack/Partition Problems," Operations Research, INFORMS, vol. 33(5), pages 1154-1160, October.
    6. Bhattacharjee, Sudip & Ramesh, R., 2000. "A multi-period profit maximizing model for retail supply chain management: An integration of demand and supply-side mechanisms," European Journal of Operational Research, Elsevier, vol. 122(3), pages 584-601, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inventory; Pricing; Dynamic programming;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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