Replenishment Policy for Price Sensitive Demand
Keywords:
Optimal number of price settings, price sensitive demand, inventory, deterioration, holding costAbstract
One can manipulate the price of items to generate the excess demand. This paper developed a dynamic pricing policy for growing market. The replenishment policy also has been suggested to inventory managers. It is shown that dynamic pricing policy outperform to static pricing policy for price sensitive demand in growing market. A numerical example is given to illustrate the proposed model.
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