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Journal of Shanghai University >

2019 , Vol. 25 >Issue 6: 1023 - 1033

DOI: https://doi.org/10.12066/j.issn.1007-2861.1958

Research Articles

Dynamic inventory and pricing joint decision model for substitutable apparel products with demand learning

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  • 1. Sydney Institute of Language and Commerce, Shanghai University, Shanghai 201800, China
    2. School of Management, Shanghai University, Shanghai 200444, China

Received date: 2019-09-11

  Online published: 2019-12-31

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Abstract

This study is based on the current management practice in the supply chain of Chinese apparel companies. The impact of demand learning and demand substitution on the inventory management and pricing is examined. Apparel products with short selling seasons in an apparel supply chain comprised of a retailer and a manufacturer are considered. Assume that the products are supplied in two batches that are mutually substitutable in the same category. The selling season is divided into two periods: The initial order is placed at pre-season and delivered at the start of the selling season, and the final order is updated after learning the actual demand in the first period of selling season. In this framework, a joint decision model of dynamic inventory and pricing is established to help retailers and manufacturers determine the optimal quantity of orders and the wholesale price. Numerical experiments show effectiveness of the model and the application results.

Key words： apparel supply chain; dynamic inventory management; dynamic pricing; demand learning; substitutable demand

Cite this article

Junjun GAO, Junxia YUAN . Dynamic inventory and pricing joint decision model for substitutable apparel products with demand learning[J]. Journal of Shanghai University, 2019 , 25(6) : 1023 -1033 . DOI: 10.12066/j.issn.1007-2861.1958

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