Pricing and Ordering

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A bi-level programming approach to coordinating pricing and ordering decisions in a multi-channel supply chain

A bi-level programming approach to coordinating pricing and ordering decisions in a multi-channel supply chain

This paper investigates the Stackelberg equilibrium for pricing and ordering decisions in a multi- channel supply chain. We study a situation where a manufacturer is going to open a direct online channel in addition to n existing traditional retail channels. It is assumed that the manufacturer is the leader and the retailers are the followers. The situation has a hierarchical nature and is formulated as a bi-level programming problem. The upper level problem is a mathematical model dealing with decisions of the manufacturer, while the lower level is a Nash equilibrium model determining the retail prices and order quantities by formulating the competition between the physical retailers. We consider a price-sensitive linear demand model with an additive uncertain part and analyze the optimal decisions for each sales channel. To enable supply chain coordination, we propose a particular revenue-sharing contract. This contract enables the retailers to set pricing and ordering policies that are equivalent to those in an integrated supply chain. Finally, we examine the impact of the model parameters on the equilibrium with a comprehensive numerical study.

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Ordering and Pricing Strategies for Fresh Products with Multiple Quality Levels Considering Consumer Utility

Ordering and Pricing Strategies for Fresh Products with Multiple Quality Levels Considering Consumer Utility

consumer behavior. Some scholars analyzed pricing decision that involves modeling customer behavior. Ferguson and Koenigsberg (2007) have presented a two-period model where the quality of the leftover inventory is often perceived to be lower by customers, and the firm can decide to carry all, some, or none of the leftover inventory to the next period [9]. This is also a model involving quality drop and quantity change. Akcay et al. (2010) considered a dynamic pric- ing problem facing a firm that sells given initial inventories of multiple substitutable and perishable products over a finite selling horizon. They modeled this multiproduct dynamic pricing problem as a stochastic dynamic program and analyzed its optimal prices [10]. Li et al. (2012) studied the joint pricing and inventory control problem for perishables when a retailer does not sell new and old inventory at the same time [11]. Sainathan (2013) considered pricing and ordering decisions faced by a retailer selling a perishable product with a two-period shelf life over an infinite horizon [12]. Those scholars considered multiple quality levels of deteriorating or de- caying products, however, they are not on the background of fresh products.

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An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

used by Arcelus and Srinivasan (1987). Demand with linear price dependence with profit maximisation using a quadratic performance was also investigated by Jørgensen and Kort (2002). The convexity introduced in the demand growth model in this work allows for a more gradual slowdown in the demand rate as price increases compared to the linear case in Jørgensen and Kort (2002. The objective in this article is to maximise the net profit from selling the product incorporating linear holding and ordering costs over a finite horizon with restrictions on both order rate and price. A similar objective in an infinite horizon setting was used by Khmelnitsky and Gerchak (2002), who did not however factor in demand-price interdependence but instead treated the demand rate as function of both inventory and time. The contribution of this work is the synthesis of optimal replenishment and pricing policies towards achieving the objective of maximising net profit from selling a single product whose stock display and pricing affects demand for it. Upper bounds are imposed on both the benchmark maximum price and order rate. Three regimes are identified in which the replenishment rate is either at its maximum or lowest and product pricing is adjusted continuously towards realisation of the stated objective.

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OPTIMAL PRICING AND REPLENISHMENT POLICIES FOR NON INSTANTANEOUS DETERIORATING ITEMS WITH SUBJECTIVE PRICING STRATEGY

OPTIMAL PRICING AND REPLENISHMENT POLICIES FOR NON INSTANTANEOUS DETERIORATING ITEMS WITH SUBJECTIVE PRICING STRATEGY

This study extend the work of Soni and Patel (2013) and consider the pricing strategy in subjective manner when the deterioration occurs in the product. Unlike Soni and Patel (2013), we consider the deterministic deterioration free time. The model considers optimization of total profit per unit time of the retailer with respect to pricing and ordering policy for non-instantaneous deteriorating items with subjective pricing strategy.

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Research on Income Influence of Enterprise Perishable under Consumer Strategy Behaviour

Research on Income Influence of Enterprise Perishable under Consumer Strategy Behaviour

This paper mainly discusses consumer strategy behavior impact on earnings of enterprises perishable products. It mainly considers from the aspects of income and cost, analyzes retailers from selling products, easy to affect the factor income, and then analyzes other factors how to influence the two factors, thus indirectly affect the retailer's cost. And it focuses on the two parts, one is the effect of dynamic pricing strategy behavior of retailers' profit, the other is ordering decision to return strategy behavior.

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E-Shopping: Frictions, Vexations and Solutions

E-Shopping: Frictions, Vexations and Solutions

customers, which include attractive pricing and the convenience of ordering online. The rapid growth of online coupon sites suggests that consumers in India are looking for deals, highlighting the need for online retailers to adopt effective marketing and pricing strategies for their goods. Online shopping initiatives are increasingly luring working professionals, women and children. What have added most to online shopping is household appliances and apparel and groceries. The customer behaviour is changing dramatically. People are not only using the web to book air tickets and movie tickets but also do not hesitate in placing orders for mobiles, laptops and other consumer electronics and home appliances even food and stuff. Seeing this bold consumer behavior, more companies are collaborating with such daily deal and discount sites. In the growing competition space, companies with good delivery services score points over others. Keeping in mind this growing potential, not just large brand but even general retail chains is upgrading their sites for ecommerce, making it more convenient for customers to place online purchase orders.

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OPTIMUM ORDERING INTERVAL FOR DETERIORATING  ITEMS WITH SELLING PRICE DEPENDENT DEMAND AND RANDOM DETERIORATION

OPTIMUM ORDERING INTERVAL FOR DETERIORATING ITEMS WITH SELLING PRICE DEPENDENT DEMAND AND RANDOM DETERIORATION

We made an attempt to solve an inventory model for deteriorating items and without shortages and performed the analysis on the effect of perishability with optimal pricing and ordering decisions. The demand is taken as a function of selling price. Special case is also provided for further study to incorporate any factual relation that may exists between time and price both in the demand rate function and taken suitable deterioration rate. The result of the model is important for formulating the decisions when the inventory deteriorates with time together with another parameter such as temperature humidity etc.

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Analysis of factors that determine the quality of garments’ Marketing controllable variables

Analysis of factors that determine the quality of garments’ Marketing controllable variables

is a system of business activities designed to plan, price, distribute and promote want satisfying products (goods and services) to present and potential customers. Marketing consists of the strategies and tactics used to identify, create and satisfying relationships with customers that result in Marketing includes anticipating demand, which requires a firm to do customer research on a regular bases so that it develops and introduces products that are desired by ement of demand which consists of stimulation, facilitation, and regulation of tasks; and satisfaction of demand which involves actual performance, safety, availability of options, after sale service and other re combinations of activities, which start before the creation of a product and don’t end until customers are satisfied. Therefore, product planning, pricing, distribution and promotion are the main activities Ethiopia has a long history of traditional garment manufacturing, which is endowed with profound national culture up to this date. Cottage industry has been the main style for traditional apparel and has satisfied the demand of the people for centuries investment and Almeda Textile Facory, 2008). The industrialization process of Ethiopia‘s garment manufacturing started in the 1895’s.In 1958, an Italian took the lead to establish ADDIS garment factory (Augsta), which was

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Investigation on the perception towards privatization of solid waste management and preference of financial model

Investigation on the perception towards privatization of solid waste management and preference of financial model

The finance model for SWM system represents the pricing of SWM. The pricing of essential Services fixed by the public service provider should be based on the public welfare in their mind. Even though, the local bodies are having several options to price on their SWM services to the people they are charging either flat rate on marginal cost pricing. The available pricing models for SWM have been identified from the review of previous studies (Billings and AG the, 1980,Fisher et al; 1995,Hewitt and Hanemam,1995and Revwick and Archibad, 1998). The identified pricing models in the present study are marginal cost pricing, full cost pricing, cost plus profit pricing, discriminatory pricing, volume-based pricing, service quality- based pricing and flat rate pricing. The respondents are asked to rate the above-said pricing at five point scale on the basis of their willingness. The mean score of each pricing among the LiG, MIG and HIG have been computed separately and shown in Table 10

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Review of Pricing Techniques in Cloud Computing

Review of Pricing Techniques in Cloud Computing

Cloud computing offers computing services to its customers at a certain price. The price at which these services are offered determines the revenue of the Cloud Provider (CP) and the amount to be paid by customer (i.e. bill) for consuming the requested services. Ideally, pricing scheme must be transparent and fair i.e. it should give clear idea to users about how they are charged, and must produce fair bills for them. This helps in building reputation of provider and thus attracts more customers. The pricing scheme should also generate fair revenues for the providers. This paper performs a literature review of pricing schemes in Cloud computing with the main aim to identify a suitable pricing scheme which is beneficial for both user as well as provider. The literature review provides an overview of various techniques of pricing, their advantages as well as limitations.

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Web service and dynamic pricing competition   Pages 99-116
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Web service and dynamic pricing competition Pages 99-116 Download PDF

In this paper, we have considered a web service pricing problem where two providers compete through dynamic pricing. Each provider offers access to a web service with different quality classes where users may buy their required web service through a reservation system. They would like adjust price of web service classes over a pre-specified time horizon to manage demand and maximize profit. Users have the right with no obligation to cancel their services as long as they pay a penalty. We have considered a dynamic setting where the web service classes share a capacity and develop a model where the demand of a service class depends on the price of provider and price of his competitor and time. We firstly have developed a time continuous model for competitive pricing of a web service and then we have studied the equilibrium condition of problem based on differential game and proposed an algorithm to obtain the optimal pricing policy for providers. Analytical analyses have provided the impact of some parameters (demand peak and price sensitivities) on the price of the web service classes. Furthermore, numerical analyses of the model have offered intuitions about the impact of the demand peak and the demand sensitivity of the provider‘s web service class with respect to its price on competitive price, reservation level and sales revenue of web service classes. Results have indicated that the cancellation revenue, sales revenue, total revenue and profit of providers increase as the maximum demand rises. Increasing in demand sensitivity of providers with respect to their prices leads to decrease in the cancellation revenue, sales revenue, total revenue and profit of providers.

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System Description: Dependency based Pre ordering for Japanese Chinese Machine Translation

System Description: Dependency based Pre ordering for Japanese Chinese Machine Translation

This paper introduces a Japanese-Chinese SMT system which employs a pre-ordering approach based on dependency parsing. Since Japanese is a language with a fairly free word order, depen- dency parsing can describe the relation between two Japanese cases in a sentence better than con- stituent parsing. Therefore, we adopt dependency parsing for pre-ordering. Experimental results show that our approach can improve the BLEU score on the test set by 0.18, compared with the baseline system (without pre-ordering).

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A SCHEMATIC STUDY OF ONLINE PRODUCT SYSTEM USING AUCTION MECHANISM

A SCHEMATIC STUDY OF ONLINE PRODUCT SYSTEM USING AUCTION MECHANISM

Non-parametric Chi-square test 8 tells us that among academic information goods there is no significant difference across product categories, seller: p-value = 0.105; buyer: p-value = 0.143), while there are marginal significant differences across product category of general information goods and types of dynamic pricing systems , seller: p-value = 0.086; buyer: p-value = 0.052; Thyd: seller: p-vlaue = 0.052 p-value The more important implication lies in practice. It is an alternative way to manage intelligent property in the Internet. The resources of free information on the Internet, to date, have been donated by individuals or are supported by academic institutions, companies, or government. However, it is likely that incentives to provide such free services will diminish and user charges will be required more frequently. The proper pricing systems, however, will prosper information goods in the Internet, which will speed up the communication and education. Consider, for example, electronic publishing where some electronic journals are provided free on the Internet. The incentive for participants to donate or absorb costs range from altruistic, to obtaining publicity for an origination. Whether such incentives will continue to warrant such free journals over the long run is hard to say. Current print publishers, who are considering Internet access to their entire journals (or separate copies of articles), are having a difficult time deciding whether to do so and, if so, how much to charge for such services. The problem is that their information infrastructure costs are very high, and these costs must be recovered, regardless of whether the articles are distributed in paper or electronic media. The right pricing systems will value information goods effectively and efficiently, to guarantee the coverage of cost. The information-based and information rich services and goods auctioning in Internet perhaps optimally delivered via Internet, and some are best sold in a fluid pricing model. If appropriate pricing system is adopted, people are more willing to trade in Internet, which will push the development of information industry and the applications of new technology. For example, many websites are selling information goods nowadays. But they are typically delivered in physical format, e.g. paper, CDs, software packages, etc. The advantages of digital format are not fully made use of. Hopefully this study will give some guide in making to the market digital information goods.

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Logistics System Design based on Service Oriented Architecture using Thomas Erl Model

Logistics System Design based on Service Oriented Architecture using Thomas Erl Model

This case study was placed on the Logistics of SatyaWacana Christian University. The business process of this logistics system was divided into two main activities which are ordering goods and distributing goods as shown in Figure 4 The units or faculties filled out a Request Form, the Logistics Department requested the head department’s approval of the Request Form, the Logistics Department submitted the Request Form to the Finance Department, the Logistics Department made the summary of item collecting, and units or faculties collected the item requested from the Supply Division. The Finance Department provided the bill to every unit or faculties, the units or faculties discharged the bills from the Finance Division. There were four main actors in this system which are; the Logistics Department as the logistics center, the Finance Department, faculty as the end point distribution, and supplier.

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The Gift and Pay What You Want Pricing

The Gift and Pay What You Want Pricing

assumes rational and egoistic individuals and predicts that in a one-shot anonymous interaction a utility maximizing buyer pays no more than the minimum price. However, in applied PWYW situations this is not always the case. Empirical evidence shows that many buyers often pay more than the minimum price. These findings are in line with theories of other regarding preferences. Furthermore, even if buyers pay more than a minimum price, this pricing mechanism is bound to fail if payments are too low to cover the production costs. In this case the application of PWYW pricing can have negative effects on a corporate profit even if people do not behave selfishly.

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Smart and Efficient Load Control System using Dynamic Tariff

Smart and Efficient Load Control System using Dynamic Tariff

only one of the best tools to achieve demand side management in Electricity Industries for. The selection then the implementation of the appropriate dynamic pricing scheme is required for proper enhancement of the consumers electrical load profile as required by demand side management systems. This paper highlights how can we design and implement of IoT based energy efficient system using dynamic tariff schemes. This design can be innovate the pattern of energy consumption by the different categories of the consumers as per the rate of tariff vary according to the variation in load on the system. The consumers of electricity can be plan for their consumption according to essential use of electricity and non- essential use of electricity as per the dynamic tariff. Indirectly consumer of electricity can be scheduled their consumption to get benefits by optimum utilization of electricity as per tariff changes or vary. This proposed system can be contribute to increase the load factor of the power system during off peak period by encouraging the consumers of electricity with the help of providing variation of rate charged to the consumers, this will results in the production cost of electricity per unit will be reduced. It will beneficial to both side’s consumers as well as suppliers. This system provides monitoring facility to consumers to acquire knowledge of their consumption which will be helpful to plan their utilization of home appliance or domestic load.

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A pattern growth-based sequential pattern mining algorithm called prefixSuffixSpan

A pattern growth-based sequential pattern mining algorithm called prefixSuffixSpan

according to an Apriori principle which states that any supersequence of an infrequent sequence is also infrequent. Because of this, all the infrequent items with respect to S α,α 0 are removed from the z part (also called the middle part) of all sequence α.z.α 0 ∈ α.S α,α 0 .α 0 . This pruning step leads to a new sequence database α.S 0 α,α 0 .α 0 whose middle parts of sequences do not contain infrequent items with respect to S α,α 0 . Then, α.S 0 α,α 0 .α 0 is partitioned according to part (2.c) of lemma 4. The i-th sub-database (1 ≤ i ≤ p) of α.S 0 α,α 0 .α 0 , denoted α.x i .S 0 α.x i ,α 0 .α 0 , is the set of subsequences of α.S 0 α,α 0 .α 0 with prefix β i = α.x i and with suffix α 0 . Each sub-database is in turn recursively pruned and partitioned according to L 1 = o 1 -o 2 . . . o n − 1 -growth linear ordering.

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Canonical Representation Of Option Prices and Greeks with Implications for Market Timing

Canonical Representation Of Option Prices and Greeks with Implications for Market Timing

We introduce a canonical representation of call options, and propose a solution to two open prob- lems in option pricing theory. The first problem was posed by (Kassouf, 1969, pg. 694) seeking “theoretical substantiation” for his robust option pricing power law which eschewed assumptions about risk attitudes, rejected risk neutrality, and made no assumptions about stock price distribu- tion. The second problem was posed by (Scott, 1987, pp. 423-424) who could not find a unique solution to the call option price in his option pricing model with stochastic volatility–without ap- pealing to an equilibrium asset pricing model by Hull and White (1987), and concluded: “[w]e cannot determine the price of a call option without knowing the price of another call on the same stock”. First, we show that under certain conditions derivative assets are superstructures of the underlying. Hence any option pricing or derivative pricing model in a given number field, based on an anticipating variable in an extended field, with coefficients in a subfield containing the un- derlying, is admissible for market timing. For the anticipating variable is an algebraic number that generates the subfield in which it is the root of an equation. Accordingly, any polynomial which satisfies those criteria is admissible for price discovery and or market timing. Therefore, at least for empirical purposes, elaborate models of mathematical physics or otherwise are unnecessary for pricing derivatives because much simpler adaptive polynomials in suitable algebraic numbers are functionally equivalent. Second, we prove, analytically, that Kassouf (1969) power law specifica- tion for option pricing is functionally equivalent to Black and Scholes (1973); Merton (1973) in an algebraic number field containing the underlying. In fact, we introduce a canonical polynomial representation theory of call option pricing convex in time to maturity, and algebraic number of the underlying–with coefficients based on observables in a subfield. Thus, paving the way for Wold decomposition of option prices, and subsequently laying a theoretical foundation for a GARCH option pricing model. Third, our canonical representation theory has an inherent regenerative mul- tifactor decomposition of call option price that (1) induces a duality theorem for call option prices, and (2) permits estimation of risk factor exposure for Greeks by standard [polynomial] regression procedures. Thereby providing a theoretical (a) basis for option pricing of Greeks, and (b) solving Scott’s dual call option problem a fortiori with our duality theory in tandem with Riesz represen- tation theory. Fourth, when the Wold decomposition procedure is applied we are able to construct an empirical pricing kernel for call option based on residuals from a model of risk exposure to persistent and transient risk factors.

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Asset Pricing   A Brief Review

Asset Pricing A Brief Review

೼ 䌘 ѻ ᅮ Ӌ ⧚ 䆎 ⱘ থ ሩ Ё ˈ ↨ 䕗 ᳝ ᕅ ડ ⱘ ⧚ 䆎 ࣙ ᣀ 䌘 ᴀ 䌘 ѻ ᅮ Ӌ ῵ ൟ ˄ Capital Asset Pricing Model ˈৢ⬹Ў CAPM ˅ˈ༫߽ᅮӋ⧚䆎˄ Arbitrage Pricing Theory, ৢ⬹Ў APT ˅ˈ䎼ᳳ䌘ᴀ䌘ѻᅮӋ῵ൟ˄ Intertemporal Capital Asset Pricing Model, ৢ ⬹Ў ICAPM ˅ˈ⍜䌍䌘ᴀ䌘ѻᅮӋ῵ൟ˄ Consumption Capital Asset Pricing Model, ৢ⬹Ў CCAPM ˅ˈҹঞᳳᴗᅮӋ⧚䆎˄ Option Pricing Theory ˅DŽ

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Smart and Efficient Load Control System using Dynamic Tariff

Smart and Efficient Load Control System using Dynamic Tariff

Electricity is used to illuminate and condition our homes, to power our businesses and factories, and to operate the appliances and devices that enhance our quality of life. Retail electricity markets generally offer flat pricing or block pricing. Prices remain unchanged irrespective of demand in the first case, while in the second, the per unit rate of electricity either increases or decreases with increasing slabs of electricity consumption [4].

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