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Models with Demand Influenced by Promotion

  • Dirk Beyer
  • Feng Cheng
  • Suresh P. Sethi
  • Michael Taksar
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 108)

Abstract

This chapter deals with a stochastic inventory model in which the probability distribution of the product demand in any given period depends on some environmental factors, as well as on whether or not the product is promoted in the period. The problem is to obtain optimal inventory ordering and product ∈x{promotion} decisions jointly so as to maximize the total profit.

Keywords

Optimal Policy Markov Decision Process Stochastic Dominance Price Discount Demand State 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag US 2010

Authors and Affiliations

  • Dirk Beyer
    • 1
  • Feng Cheng
    • 2
  • Suresh P. Sethi
    • 3
  • Michael Taksar
    • 4
  1. 1.M-FactorSan MateoUSA
  2. 2.Federal Aviation AdministrationOffice of Performance Analysis and StrategyWashingtonUSA
  3. 3.School of Management, M/S SM30The University of Texas at DallasRichardsonUSA
  4. 4.Department of MathematicsUniversity of MissouriColumbiaUSA

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