Resource allocation problems: algorithmic approaches
Resource allocation problems: algorithmic approaches
Network flows: theory, algorithms, and applications
Network flows: theory, algorithms, and applications
Combined Pricing and Inventory Control Under Uncertainty
Operations Research
Electronic Commerce Research
Manufacturing & Service Operations Management
Requirements Planning with Pricing and Order Selection Flexibility
Operations Research
Reverse pricing model in supply chains: the impact of price elasticities
Proceedings of the 10th international conference on Electronic commerce
The generalized assignment problem with flexible jobs
Discrete Applied Mathematics
Dynamic selling of quality-graded products under demand uncertainties
Computers and Industrial Engineering
Learning approaches for developing successful seller strategies in dynamic supply chain management
Information Sciences: an International Journal
Computers and Industrial Engineering
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The Internet is changing the automotive industry as the traditional manufacturer and dealer structure faces increased threats from third party e-tailers. Dynamic pricing together with the Direct-to-Customer business model can be used by manufacturers to respond to these challenges. Indeed, by coordinating production and inventory decisions with dynamic pricing, the automotive industry can increase profits and improve supply chain performance. To illustrate these benefits, we discuss a strategy that incorporates pricing, production scheduling, and inventory control under production capacity limits in a multi-period horizon. We show that under concave revenue curves, a greedy algorithm provides the optimal solution, and we describe extensions to the model such as multiple products sharing production capacity. Using computational analysis, we quantify the profit potential and sales variability due to dynamic pricing, and we suggest that it is possible to achieve significant benefit with few price changes.