Dynamic Pricing and Ordering Decisions by a Monopolist
研究垄断零售商在库存周期内产品存在物理损耗和市场价值下降时，如何通过连续调整售价来最大化利润，并给出了最优定价和订购决策的条件。
This paper considers the relationship between pricing and ordering decisions for a monopolistic retailer facing a known demand function where, over the inventory cycle, the product may exhibit: (i) physical decay or deterioration of inventory called wastage; and (ii) decrease in market value called value drop associated with each unit of inventory on hand. The retailer is allowed to continuously vary the selling price of the product over the cycle. We introduce a notion of instantaneous margin, and use it to derive profit maximizing conditions for the retailer. The model explains the markdown of retail goods subject to decay. It also provides guidance in determining when price changes during the cycle are worthwhile due to product aging, how often such changes should be made, and how such changes affect ordering intervals and quantities.