Optimal Preorder Strategy with Endogenous Information Control
Management Science
A pricing model for a service inventory system when demand is price and waiting time sensitive
ICCSA'05 Proceedings of the 2005 international conference on Computational Science and Its Applications - Volume Part IV
The benefit of information asymmetry: When to sell to informed customers?
Decision Support Systems
A Multiordering Newsvendor Model with Dynamic Forecast Evolution
Manufacturing & Service Operations Management
Fashion retailing forecasting based on extreme learning machine with adaptive metrics of inputs
Knowledge-Based Systems
Will a supplier benefit from sharing good information with a retailer?
Decision Support Systems
A decision support system for mean-variance analysis in multi-period inventory control
Decision Support Systems
A seasonal discrete grey forecasting model for fashion retailing
Knowledge-Based Systems
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Consider a retailer who sells perishable seasonal products with uncertain demand. Due to the short sales season and long replenishment lead times associated with such products, the retailer is unable to update demand forecasts by using actual sales data generated from the early part of the season and to respond by replenishing stocks during the season. To overcome this limitation, we examine the case in which the retailer develops a program called the "advance booking discount" (ABD) program that entices customers to commit to their orders at a discount price prior to the selling season. The time between placement and fulfillment of these precommitted orders provides an opportunity for the retailer to update demand forecasts by utilizing information generated from the precommitted orders and to respond by placing a cost-effective order at the beginning of the selling season. In this paper, we evaluate the benefits of the ABD program and characterize the optimal discount price that maximizes the retailer's expected profit.