The effectiveness of a simple policy for coordinating inventory control and pricing strategies
Name
706823648-MIT.pdf
Description
Full printable version
Size
4.89 MB
Format
Adobe PDF
Checksum (MD5)
60d37bbcab4fc416cda539a0f63c8a22
Author(s)
Sun, Zhibo, S.M. Massachusetts Institute of Technology
Advisor(s)
David Simchi-Levi.
Date Issued
2010
Publisher
Massachusetts Institute of Technology
Abstract
We investigate the effectiveness of an (s, S, p) policy relative to an (s, S, A, p) policy in a single product, periodic review, finite horizon model with stochastic multiplicative demand and fixed ordering cost, in which an (s, S, A, p) policy is optimal. An extensive numerical study shows that empirically an (s, S, p) policy is highly effective relative to an (s, S, A, p) policy. We also formulate two alternative benchmark policies and find that the (s, S, p) policy is superior in terms of profit. In addition, we propose an efficient algorithm with simulated annealing and modified binary search to determine the (s, S, p) policy for the model.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 51-54).
Subjects
Computation for Design and Optimization Program.
MIT Department
Massachusetts Institute of Technology. Computation for Design and Optimization Program
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