Complementarity analysis of a multi-item inventory model with leading product pricing

• 成果类型: Article
• 署名作者: Kim, Sangjo; Feng, Youyi; Xu, Jianjun
• 署名单位: Shanghai University of Finance & Economics; Dongbei University of Finance & Economics; Dongbei University of Finance & Economics
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.14084
• 发表日期: 2023
• 页码: 4190-4211
• 关键词: economic complementarity; inventory/production; joint inventory/pricing control

摘要

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 L-(sic)-concave 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.