Preservation of Quasi-K-Concavity and Its Applications

• 成果类型: Article
• 署名作者: Chen, Xin; Zhang, Yuhan; Zhou, Sean X.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Chinese University of Hong Kong
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.1090.0802
• 发表日期: 2010
• 页码: 1012-1016
• 关键词: coordinating inventory control; Fixed Ordering Cost; pricing strategies; random demand; optimality

摘要

In this paper, we establish a new preservation property of quasi-K-concavity under certain optimization operations. One important application of the result is to analyze joint inventory-pricing models for single-product periodic-review inventory systems with concave ordering costs. At each period, an ordering quantity and a selling price of the product are determined simultaneously. Demand is random but sensitive to the price. The objective is to maximize the total expected discounted profit over a finite planning horizon. Assuming that demand is a deterministic function of the selling price plus a random perturbation with a positive Polya or uniform distribution, we show that a generalized (s, S, p) policy is optimal.