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http://hdl.handle.net/10397/7643
Title: | Pricing perishable products with compound poisson demands | Authors: | Guo, P Lian, Z Wang, Y |
Issue Date: | Jul-2011 | Source: | Probability in the Engineering and informational sciences, July 2011, v. 25, no. 3, p. 289-306 | Abstract: | We consider the dynamic pricing problem of perishable products in a system with a constant production rate. Potential demands arrive according to a compound Poisson process, and are price-sensitive. We carry out the sample path analysis of the inventory process and by using level-crossing method, we derive its stationary distribution given a pricing function. Based on the distribution, we express the average profit function. By a stochastic comparison approach, we characterize the pricing strategy given different customers willingness-to-pay functions. Finally, we provide an approximation algorithm to calculate the optimal pricing function. | Keywords: | Revenue management Dynamic pricing Perishable inventory Level-crossing |
Publisher: | Cambridge University Press | Journal: | Probability in the engineering and informational sciences | ISSN: | 0269-9648 | EISSN: | 1469-8951 | DOI: | 10.1017/S0269964811000027 | Rights: | © Cambridge University Press 2011 The following article "Pengfei Guo, Zhaotong Lian and Yulan Wang (2011). PRICING PERISHABLE PRODUCTS WITH COMPOUND POISSON DEMANDS. Probability in the Engineering and Informational Sciences, 25, pp 289-306. doi:10.1017/S0269964811000027." is available at http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=8310192 |
Appears in Collections: | Journal/Magazine Article |
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Guo_Pricing_Perishable_Poisson.pdf | 370.37 kB | Adobe PDF | View/Open |
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