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                                                     Seminar

             Department of Systems Engineering and Engineering Management
                                  The Chinese University of Hong Kong

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Title

:

Coordinated Pricing and Inventory Management with Costly Price Adjustment

　

　

　

Speaker

:

Prof. Xin Chen

　

　

University of Illinois at Urbana-Champaign

　

　

　

　

　

Date

:

December 22nd, 2008 (Monday)

　

　

　

Time

:

4:30 p.m. - 5:30 p.m.

　

　

　

Venue

:

Room 513

　

　

William M.W. Mong Engineering Building

　

　

(Engineering Building Complex Phase 2)

　

　

CUHK

　

　

　

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Abstract:
　

Motivated by widely adopted dynamic pricing practice in industry and the empirical evidence of costly price adjustments, we consider periodic-review inventory and pricing models with price adjustment costs that consist of both fixed and variable parts. At each period, an ordering quantity and a price of a single product are determined. The demand of the period depends on the selling price of the current period, and leftover inventory is carried over to the next period. Different from the majority of the literature, we assume that a price adjustment cost is incurred if the current price is different from the previous one. The firm needs to coordinate the pricing and inventory replenishment decisions in each period to maximize its total profit over a finite planning horizon. We analyze both stochastic models and deterministic models. For stochastic models, we characterize the structure of the optimal policies. While for deterministic models, we develop polynomial time algorithms.


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Biography:
　

Xin Chen is an assistant professor at the University of Illinois at Urbana-Champaign. He obtained his PhD from MIT in 2003, MS from Chinese Academy of Sciences in 1998 and BS from Xiangtan University in 1995. His research interest lies in optimization and supply chain management. He is the coauthor of the book “The Logic of Logistics: Theory, Algorithms, and Applications for Logistics and Supply Chain Management” Second Edition.


************************* ALL ARE WELCOME ************************

　

　

　

Host

:

Prof. Sean X. Zhou

Tel

:

(852) 2609-8336

Email

:

zhoux@se.cuhk.edu.hk

　

　

　

Enquiries

:

Prof. Nan Chen or Prof. Sean X. Zhou

　

:

Department of Systems Engineering and Engineering Management

　

　

CUHK

Website

:

http://www.se.cuhk.edu.hk/~seg5810

Email

:

seg5810@se.cuhk.edu.hk

　

　

　

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