Research on Optimum Pricing of Professional Sale-Driven Distribution Center under Uncertain Conditions
- Resource Type
- Conference
- Authors
- Feng, Fenling; Chen, Zhiya
- Source
- 2007 International Conference on Wireless Communications, Networking and Mobile Computing Wireless Communications, Networking and Mobile Computing, 2007. WiCom 2007. International Conference on. :4752-4755 Sep, 2007
- Subject
- Communication, Networking and Broadcast Technologies
Computing and Processing
Pricing
Logistics
Delay
Production
Marketing and sales
Traffic control
Transportation
Stochastic processes
Supply and demand
Inventory management
- Language
- ISSN
- 2161-9646
2161-9654
The paper studies the optimum pricing of the professional sale-driven distribution center of which the demand and supply are stochastic. A model is set up to reflect the dynamic inventory of the distribution center. The term to avoid bankruptcy is analysis. (Conditions to avoid bankruptcy is analyzed) The optimistic margin of the professional sale-driven distribution center is studied when the inventory level keeps stable. And the conclusion is that there exist the P*a - P*b which make the expected yield of the professional sale-driven distribution center maximum, and that the value of optimistic margin is fixed, it is only decided by the highest sending price which the center can bear and the lowest price that supplier would like to sell goods.