Quantitative Models for Supply Chain Management
Quantitative Models for Supply Chain Management
Pricing and the News Vendor Problem: a Review with Extensions
Operations Research
Combined Pricing and Inventory Control Under Uncertainty
Operations Research
Impact of Uncertainty and Risk Aversion on Price and Order Quantity in the Newsvendor Problem
Manufacturing & Service Operations Management
Selling to the Newsvendor: An Analysis of Price-Only Contracts
Manufacturing & Service Operations Management
Centralized and Competitive Inventory Models with Demand Substitution
Operations Research
Channel Performance Under Consignment Contract with Revenue Sharing
Management Science
The Dynamic Pricing Problem from a Newsvendor's Perspective
Manufacturing & Service Operations Management
A General Equilibrium Model for Industries with Price and Service Competition
Operations Research
A Fractiles Perspective to the Joint Price/Quantity Newsvendor Model
Management Science
Relationships Among Three Assumptions in Revenue Management
Operations Research
A Note on Probability Distributions with Increasing Generalized Failure Rates
Operations Research
Newsvendors Under Simultaneous Price and Inventory Competition
Manufacturing & Service Operations Management
Resource and Revenue Management in Nonprofit Operations
Operations Research
Optimal prices for finite capacity queueing systems
Operations Research Letters
The Newsvendor Problem with Advertising Revenue
Manufacturing & Service Operations Management
Manufacturing & Service Operations Management
Integration of Inventory and Pricing Decisions with Costly Price Adjustments
Operations Research
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We introduce a measure of elasticity of stochastic demand, called the elasticity of the lost-sales rate, which offers a unifying perspective on the well-known newsvendor with pricing problem. This new concept provides a framework to characterize structural results for coordinated and uncoordinated pricing and inventory strategies. Concavity and submodularity of the profit function, as well as sensitivity properties of the optimal inventory and price policies, are characterized by monotonicity conditions, or bounds, on the elasticity of the lost-sales rate. These elasticity conditions are satisfied by most relevant demand models in the marketing and operations literature. Our results unify and complement previous work on price-setting newsvendor models and provide a new tool for researchers modeling stochastic price-sensitive demand in other contexts.