Stockout Compensation: Joint Inventory and Price Optimization in Electronic Retailing
INFORMS Journal on Computing
Dynamic Pricing for Nonperishable Products with Demand Learning
Operations Research
Inventory Management of a Fast-Fashion Retail Network
Operations Research
Demand Dynamics in the Seasonal Goods Industry: An Empirical Analysis
Marketing Science
Mathematical and Computer Modelling: An International Journal
Clearance Pricing Optimization for a Fast-Fashion Retailer
Operations Research
Clearance Pricing Optimization for a Fast-Fashion Retailer
Operations Research
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Clearance pricing and end of season inventory management are challenging and important problems in retailing. Sales rates depend upon price, seasonal effects, and the remaining assortment of items available to customers. There is little time to react to observed sales, and pricing errors result in either loss of potential revenue or excess inventory to be liquidated. This paper develops optimal clearance prices and inventory management policies that take into account the impact of reduced assortment and seasonal changes on sales rates. Versions of these policies have been tested and implemented at three major retail chains and these applications are summarized and discussed.