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

Author

Listed:
  • van den Heuvel, W.
  • Wagelmans, A.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. Our algorithm appears to be superior also in terms of computation time. Furthermore, we point out several mistakes in the paper by Bhattacharjee and Ramesh.

Suggested Citation

  • van den Heuvel, W. & Wagelmans, A.P.M., 2003. "A note on a multi-period profit maximizing model for retail supply chain management," ERIM Report Series Research in Management ERS-2003-072-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:991
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    References listed on IDEAS

    as
    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

    dynamic programming; inventory; pricing;
    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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