A Note on the Relationship Among Capacity, Pricing, and Inventory in a Make-to-Stock System

• 成果类型: Article
• 署名作者: Allon, Gad; Zeevi, Assaf
• 署名单位: Northwestern University; Columbia University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/j.1937-5956.2010.01193.x
• 发表日期: 2011
• 页码: 143-151
• 关键词: capacity investment; pricing; inventory; stochastic demand

摘要

We address the simultaneous determination of pricing, production, and capacity investment decisions by a monopolistic firm in a multi-period setting under demand uncertainty. We analyze the optimal decision with particular emphasis on the relationship between price and capacity. We consider models that allow for either bi-directional price changes or models with markdowns only, and in the latter case we prove that capacity and price are strategic substitutes.