TY - GEN
T1 - Supply chain retailer price markdown policy for deteriorating inventory
AU - Widyadana, Gede Agus
AU - Wee, Hui Ming
PY - 2008
Y1 - 2008
N2 - Pricing strategy is an interesting and relevant topic in a supply chain, especially for retailers. Many business models on pricing have been developed in recent years. One of the pricing strategies is for the retailers to markdown product price in order to induce larger replenishment from the buyers. The effect of markdown product price is even more obvious for deteriorating items with price-dependent demand. To increase sale, price is marked down during the replenishment time period. An example is used to illustrate the theory, and some interesting results describing the effect of markdown price are derived. Our study shows that markdown pricing policy can increase retailer profit, and it is more sensitive to the deteriorating rate parameter than the initial price parameter.
AB - Pricing strategy is an interesting and relevant topic in a supply chain, especially for retailers. Many business models on pricing have been developed in recent years. One of the pricing strategies is for the retailers to markdown product price in order to induce larger replenishment from the buyers. The effect of markdown product price is even more obvious for deteriorating items with price-dependent demand. To increase sale, price is marked down during the replenishment time period. An example is used to illustrate the theory, and some interesting results describing the effect of markdown price are derived. Our study shows that markdown pricing policy can increase retailer profit, and it is more sensitive to the deteriorating rate parameter than the initial price parameter.
KW - Deteriorating item
KW - Inventory
KW - Markdown
KW - Price dependent demand
KW - Supply chain
UR - http://www.scopus.com/inward/record.url?scp=56749182429&partnerID=8YFLogxK
U2 - 10.1109/ICMIT.2008.4654576
DO - 10.1109/ICMIT.2008.4654576
M3 - Conference contribution
AN - SCOPUS:56749182429
SN - 9781424423309
T3 - Proceedings of the 4th IEEE International Conference on Management of Innovation and Technology, ICMIT
SP - 1401
EP - 1406
BT - Proceedings of the 4th IEEE International Conference on Management of Innovation and Technology, ICMIT
T2 - 4th IEEE International Conference on Management of Innovation and Technology, ICMIT
Y2 - 21 September 2008 through 24 September 2008
ER -