Abstract
This paper discusses a problem of pricing and replenishment decisions for a system consisting of a single vendor and a single retailer. The retailer faces a stochastic customer demand, and adopts a continuous review (r,Q) policy for replenishing inventory from the vendor. At the beginning of the time horizon, the retailer chooses his expected sales target, and satisfies customer demands with resultant price that depends on the sales target. Taking the optimal centralized solution as benchmark, we analyze the system performances with wholesale-price contract and revenue-sharing contract, respectively. Numerical computations show that the performance of the revenue-sharing contract dominants the wholesale-price contract in most of the regular cases.
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Guan, R., Zhao, X. (2010). Pricing and Replenishment Decisions in a Continuous Review Inventory System under (r,Q) Policy. In: Huang, G.Q., Mak, K.L., Maropoulos, P.G. (eds) Proceedings of the 6th CIRP-Sponsored International Conference on Digital Enterprise Technology. Advances in Intelligent and Soft Computing, vol 66. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-10430-5_100
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DOI: https://doi.org/10.1007/978-3-642-10430-5_100
Publisher Name: Springer, Berlin, Heidelberg
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