Seminar

Department of Systems Engineering and Engineering Management
The Chinese University of Hong Kong

Title: Joint Inventory and Pricing Decisions with Promotions

Speaker: Prof. Miao SONG
                Dept of Industrial and Manufacturing Systems Engineering
                The University of Hong Kong

Date: June 12, 2012 (Tue)

Time: 11:00a.m. - 12:15p.m.

Venue: Room 513
            William M.W. Mong Engineering Building
            (Engineering Building Complex Phase 2)
            CUHK

Abstract:

This paper studies a joint inventory and pricing model with multiplicative stochastic demand in a dynamic programming framework, where the retailer has an option to quote both a regular selling price and a promotional price in each period. We show that the optimal inventory control policy remains a basestock policy and identify the conditions under which the regular and promotional prices should be quoted. When the price-dependent demand is derived from a utility model, we further characterize the optimal pricing policy, and study the monotonic properties about the amount of promotional discount and the additional profit gained by the promotional option. Numerical results also shed light on how the value gained by promotion changes with respect to various input parameters, the demand function, and the length of the planning horizon.

Biography:

Dr. Miao Song earned her PhD degree from Massachusetts Institute of Technology in 2010. She is currently an assistant professor in the Department of Industrial and Manufacturing Systems Engineering at the University of Hong Kong. Her research focuses on operations research applications in supply chain management. She has published in top journals such as Management Science and Operations Research.

*********************** ALL ARE WELCOME ************************
Host: Prof. Duan Li

Tel: (852) 3943-8316

Email :  dli@se.cuhk.edu.hk

Enquiries: Prof. Nan Chen or Prof. Sean X. Zhou
Department of Systems Engineering and Engineering Management
CUHK

Website: http://www.se.cuhk.edu.hk/~seem5201

Email: seem5201@se.cuhk.edu.hk

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