Analysis of an all-or-nothing inventory model with price-dependent intermittent demand and supply uncertainty
Computers and Industrial Engineering, cilt.201, 2025 (SCI-Expanded, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 201
- Basım Tarihi: 2025
- Doi Numarası: 10.1016/j.cie.2025.110883
- Dergi Adı: Computers and Industrial Engineering
- Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, ABI/INFORM, Compendex, INSPEC, DIALNET
- Anahtar Kelimeler: Pricing, Inventory, Uncertain demand, Uncertain yield
- Boğaziçi Üniversitesi Adresli: Evet
Özet
In this article, we consider an inventory model under intermittent demand where the demand occurrence depends on the price and the yield uncertainty of the item. Once the demand occurs, the size of the demand is a random variable. We restrict ourselves to an all-or-nothing replenishment model and primarily focus on the effects of pricing and supply uncertainty. We present analytical (for the single period) and numerical findings (for the multi-periods) for the optimality of a threshold replenishment policy and compare responsive (after observing hold replenishment policy yield) versus unresponsive (before observing yield) pricing schemes. In particular, we show that the profit difference between responsive and unresponsive pricing cases can be substantial. We present numerical results on the sensitivity of the responsive optimal price on the yield level and other system parameters. We also discuss our findings for different demand size distributions.