Inventory policy in the presence of market disruptions
Operations Research
Pricing and the News Vendor Problem: a Review with Extensions
Operations Research
Supply interruptions in a lost-sales inventory system with random lead time
Computers and Operations Research
Mathematics of Operations Research
The effect of customer segmentation on an inventory system in the presence of supply disruptions
Winter Simulation Conference
Coordinating inventory control and pricing strategies: The continuous review model
Operations Research Letters
Proceedings of the Winter Simulation Conference
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Supply disruptions have attracted a lot of attention due to the huge detriments they might cause. Supply disruptions have various forms, including machine breakdowns and natural disasters. As an effective marketing tool, dynamic pricing has been helping sellers enhance their profits. In addition, price-dependent demand is common in practice. This paper studies a single-product inventory system that consists of a supplier, a retailer, and customers. The supplier is subject to disruptions. The retailer adopts a periodic review inventory policy, under which an appropriate inventory replenishment order is sent to the supplier every a fixed period of time. Price is adjusted according to inventory level at each inventory review point. Customer demand variation based on price is also considered. In this paper, we simulate the concerned inventory system and investigate the impacts of supply disruptions, dynamic pricing, and price-sensitive demand on the retailer's annual profit.