{"title":"Complementarity analysis of a multi‐item inventory model with leading product pricing","authors":"Sangjo Kim, Youyi Feng, Jianjun Xu","doi":"10.1111/poms.14084","DOIUrl":null,"url":null,"abstract":"Abstract Our research investigates a joint inventory replenishment and pricing problem, where a seller controls the price of a leading product while restocking for all the products. We demonstrate that the seller's expected value functions present an structure, recommending an optimal order‐up‐to inventory‐level and list‐price policy. Our findings reveal divergent economic relationships between products from the seller's and customer's perspectives, suggesting managers broaden their strategies beyond customer viewpoints. We extend the pricing and inventory analysis to scenarios involving three substitute products under both price and inventory control. In these situations, we further reveal that sellers and customers uniformly view product inventories as substitutes, and the corresponding value functions are submodular and mutually diagonally dominant.","PeriodicalId":20623,"journal":{"name":"Production and Operations Management","volume":"15 1","pages":"0"},"PeriodicalIF":4.8000,"publicationDate":"2023-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Production and Operations Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/poms.14084","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENGINEERING, MANUFACTURING","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract Our research investigates a joint inventory replenishment and pricing problem, where a seller controls the price of a leading product while restocking for all the products. We demonstrate that the seller's expected value functions present an structure, recommending an optimal order‐up‐to inventory‐level and list‐price policy. Our findings reveal divergent economic relationships between products from the seller's and customer's perspectives, suggesting managers broaden their strategies beyond customer viewpoints. We extend the pricing and inventory analysis to scenarios involving three substitute products under both price and inventory control. In these situations, we further reveal that sellers and customers uniformly view product inventories as substitutes, and the corresponding value functions are submodular and mutually diagonally dominant.
期刊介绍:
The mission of Production and Operations Management is to serve as the flagship research journal in operations management in manufacturing and services. The journal publishes scientific research into the problems, interest, and concerns of managers who manage product and process design, operations, and supply chains. It covers all topics in product and process design, operations, and supply chain management and welcomes papers using any research paradigm.