Ordering and Pricing Policies for Seasonal Goods with Random Demand and Prompt and Scheduled Delivery Option

Ming-Guan Huang

《Asia Pacific Management Review》 預刊文章 Pp. 2-16

https://doi.org/10.6126/APMR.2014.19.2.01

並列摘要

Competitive products frequently face volatile market demand, including most seasonal goods. Simultaneously, retailers of seasonal goods frequently provide customers with a choice of prompt or scheduled delivery. Generally, scheduled delivery services are collectively shipped and realized at the end of the selling season. Moreover, because scheduled delivery can reduce delivery costs, a price discount is commonly offered by retailers as an incentive to encourage customers to select scheduled delivery. Accordingly, this study modifies the traditional newsboy model to tackle the ordering and pricing problem involving seasonal goods with lognormal random demand and two delivery options. Additionally, a scheduled delivery willingness function dependent on discount rate and waiting time until the goods are received is proposed to assess the profitable effect on delivery way changing. Finally, an effective and practical economic ordering and pricing model is developed for jointly determining the optimal order quantity and discount rate to maximize the retailer's expected profits. This study presents numerical examples demonstrating that the profit from offering delivery options clearly exceeds that from only offering prompt delivery.

並列關鍵字

Economic ordering model ； delivery option ； newsboy model ； seasonal goods

參考文獻

Bagchi, U., Hayya J.C. (1984) Demand during lead time for normal unit demand and Erlang lead time. Journal of the Operational Research Society, 35(2), 131-134.

Bagchi, U., Hayya J.C., Ord, J.K. (1984) Modeling demand during lead time. Decision Sciences, 15(2), 157-176.

Balkhi, Z.T., Benkherouf, L. (2004) On an inventory model for deteriorating items with stock dependent and time-varying demand rate. Computers and Operations Research, 31(2), 223-240.

Balkhi, Z.T., Tadj, L. (2008) A generalized economic order quantity model with deteriorating items and time varying demand, deterioration, and costs. International Transactions in Operational Research, 15(4), 509-517.

Bartezzaghi, E., Verganti, R., Zotteri, G. (1999) Measuring the impact of asymmetrical demand distribution on inventories. International Journal of Production Economics, 60- 61(3), 395-404.