Advance selling policies with stochastic consumer valuations and advertising effects: dynamic pricing and inventory decisions

IF 9.8 1区 工程技术 Q1 ENGINEERING, INDUSTRIAL International Journal of Production Economics Pub Date : 2024-09-07 DOI:10.1016/j.ijpe.2024.109401
{"title":"Advance selling policies with stochastic consumer valuations and advertising effects: dynamic pricing and inventory decisions","authors":"","doi":"10.1016/j.ijpe.2024.109401","DOIUrl":null,"url":null,"abstract":"<div><p>Advance selling enables consumers to order new products before their release, ensuring prompt deliveries upon release. Retailers benefit from advance selling by boosting total sales and mitigating excess or insufficient inventory costs. In practice, various advance selling policies are designed and applied. Standard Advance Selling, Advance Selling with Price Guarantee, and Advance Selling with a Deposit are often seen and successfully implemented policies by different retailers. However, given the stochastic demands and consumer valuations, whether advance selling is always desirable for retailers is unclear. If advance selling is beneficial, what are the optimal prices and ordering quantities and which policy is the best remain interesting questions. This paper aims to provide analytical solutions for optimal pricing and inventory decisions under the three advance selling policies mentioned above. The results show that the performance of the advance selling policies relies on the proportion of high-valuation consumers. The critical values of the proportion of high-valuation consumers are identified. Further, we extend the problem to consider the effects of advertising. The advertising affects the information diffusion and indirectly affects the demands of the product. Moreover, the analytical and numerical study compares the performances of different advance selling policies. Finally, multiple managerial insights are summarized.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8000,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0925527324002585/pdfft?md5=050850a7fb0e442189afe4675c92cadd&pid=1-s2.0-S0925527324002585-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Production Economics","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0925527324002585","RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENGINEERING, INDUSTRIAL","Score":null,"Total":0}
引用次数: 0

Abstract

Advance selling enables consumers to order new products before their release, ensuring prompt deliveries upon release. Retailers benefit from advance selling by boosting total sales and mitigating excess or insufficient inventory costs. In practice, various advance selling policies are designed and applied. Standard Advance Selling, Advance Selling with Price Guarantee, and Advance Selling with a Deposit are often seen and successfully implemented policies by different retailers. However, given the stochastic demands and consumer valuations, whether advance selling is always desirable for retailers is unclear. If advance selling is beneficial, what are the optimal prices and ordering quantities and which policy is the best remain interesting questions. This paper aims to provide analytical solutions for optimal pricing and inventory decisions under the three advance selling policies mentioned above. The results show that the performance of the advance selling policies relies on the proportion of high-valuation consumers. The critical values of the proportion of high-valuation consumers are identified. Further, we extend the problem to consider the effects of advertising. The advertising affects the information diffusion and indirectly affects the demands of the product. Moreover, the analytical and numerical study compares the performances of different advance selling policies. Finally, multiple managerial insights are summarized.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
具有随机消费者价值和广告效应的预售政策:动态定价和库存决策
预售使消费者能够在新产品上市前订购,确保新产品上市后迅速交货。零售商从预售中获益,既提高了销售总额,又降低了过剩或不足的库存成本。在实践中,设计和应用了各种预售政策。标准预售、带价格保证的预售和带定金的预售是不同零售商经常采用并成功实施的政策。然而,考虑到随机需求和消费者估值,预售对零售商来说是否总是可取的并不明确。如果预售是有益的,那么最佳价格和订货量是多少,哪种政策是最好的,这些仍然是令人感兴趣的问题。本文旨在为上述三种预售政策下的最优定价和库存决策提供分析解决方案。结果表明,预售政策的绩效取决于高价值消费者的比例。本文确定了高价值消费者比例的临界值。此外,我们还将问题扩展到考虑广告的影响。广告影响信息传播,间接影响产品需求。此外,分析和数值研究还比较了不同预售政策的表现。最后,我们总结了多种管理启示。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
International Journal of Production Economics
International Journal of Production Economics 管理科学-工程:工业
CiteScore
21.40
自引率
7.50%
发文量
266
审稿时长
52 days
期刊介绍: The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.
期刊最新文献
A hybrid data-driven optimization and decision-making approach for a digital twin environment: Towards customizing production platforms Value of blockchain for scope 3 carbon disclosure: The moderating role of data processing technologies Contagion of corporate misconduct in the supply chain: Evidence from customers and suppliers in China Drone-based warehouse inventory management of perishables Algorithm aversion during disruptions: The case of safety stock
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1