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| Content Provider | IEEE Xplore Digital Library |
|---|---|
| Author | Yang Cheng-hu Du Wen |
| Copyright Year | 2007 |
| Description | Author affiliation: Southwest Jiaotong Univ., Chengdu (Yang Cheng-hu; Du Wen) |
| Abstract | Based on revenue management, dynamic pricing model of deteriorating items is studied. Firstly, the feasibility of the application of revenue management in dynamic pricing of deteriorating items and the character of the time to deterioration is represented. In order to gain maximum expected revenue, dynamic pricing model of deteriorating items is proposed, which is a continuous-time revenue management model based on a set of discrete price levels. Then we show a subset of these prices which forms a concave envelope is potentially optimal, and draw the optimal solution by dynamic programming recursions. Finally, we find items deterioration is influential to the optimal solution. When the items are deteriorating, it is better to sell them in a relative low price and depend on the deteriorating rate, and the high, it should be sold as early as possible. Then a numerical example is provided. |
| Starting Page | 628 |
| Ending Page | 632 |
| File Size | 628480 |
| Page Count | 5 |
| File Format | |
| ISBN | 9781424412938 |
| DOI | 10.1109/GSIS.2007.4443350 |
| Language | English |
| Publisher | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Publisher Date | 2007-11-18 |
| Publisher Place | China |
| Access Restriction | Subscribed |
| Rights Holder | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Subject Keyword | Radioactive materials Optimal control Pricing Conference management Inventory management Dynamic programming Weibull distribution Intelligent systems |
| Content Type | Text |
| Resource Type | Article |
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