IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v55y2017i14p4153-4163.html
   My bibliography  Save this article

Compound Poisson demand with price-dependent intensity for fast moving items: price optimisation and parameters estimation

Author

Listed:
  • Anna V. Kitaeva
  • Alexandra O. Zhukovskaya
  • Oleg A. Zmeev

Abstract

We consider a single-period single-item inventory system. The demand is a compound Poisson process with price-dependent intensity and continuous batch size distribution. The intensity of the customers’ arrivals is sufficiently high to use a diffusion approximation of the demand process. Equations for retail price maximising of an expected profit with the optimal order quantity are obtained and an approximate solution is proposed. Numerical results illustrating the percentage of the increase in profit for linear price-intensity dependence are given. An approximate distribution of the selling time of a large order is obtained. Demand parameters estimation procedures based on two censored samples – the observed selling durations and demands – are discussed.

Suggested Citation

  • Anna V. Kitaeva & Alexandra O. Zhukovskaya & Oleg A. Zmeev, 2017. "Compound Poisson demand with price-dependent intensity for fast moving items: price optimisation and parameters estimation," International Journal of Production Research, Taylor & Francis Journals, vol. 55(14), pages 4153-4163, July.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:14:p:4153-4163
    DOI: 10.1080/00207543.2016.1257168
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2016.1257168
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207543.2016.1257168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tprsxx:v:55:y:2017:i:14:p:4153-4163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.