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Chinese Journal of Management Science ›› 2015, Vol. 23 ›› Issue (4): 123-128.doi: 10.16381/j.cnki.issn1003-207x.2015.04.015

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Dynamic Pricing and Inventory Control with Anchoring Effect

SONG Hong-fang, RAN Lun, CHU Hong-rui, ZHANG Wen-si   

  1. School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
  • Received:2013-10-22 Revised:2014-01-17 Online:2015-04-20 Published:2015-04-24

Abstract: The strategy is designed for dynamic pricing and inventory control of a two-echelon supply chain, which has a monopoly retailer who sell products to customers with anchoring effect. With anchoring effect of the consumer decision-making model, reference price of customers is relation to demand and dynamic price. The model of dynamic pricing and inventory control is built, and then the model with discount factor is considered. In addition, the inventory backlog in the supply chain is investigated. The numerical result shows that consumers determine their best time to purchase according to the change of market price, and the retailer's expected revenne will be increased with the extension of sale hours.

Key words: dynamic pricing, inventory control, anchoring effect

CLC Number: