JIMO
Optimal pricing and inventory strategies for introducing a new product based on demand substitution effects
Zhijie Sasha Dong Wei Chen Qing Zhao Jingquan Li
Journal of Industrial & Management Optimization 2017, 13(5): 1-15 doi: 10.3934/jimo.2018175

This paper studies a single-period inventory-pricing problem with two substitutable products, which is very important in the area of Operations Management but has received little attention. The proposed problem focuses on determining the optimal price of the existing product and the inventory level of the new product. Inspired by practice, the problem considers various pricing strategies for the existing product as well as the cross elasticity of demand between existing and new products. A mathematical model has been developed for different pricing strategies to maximize the expected profit. It has been proven that the objective function is concave and there exists the unique optimal solution. Different sets of computational examples are conducted to show that the optimal pricing and inventory strategy generated by the model can increase profits.

keywords: Inventory pricing optimal strategy new product demand substitution
JIMO
Immediate schedule adjustment and semidefinite relaxation
Jinling Zhao Wei Chen Su Zhang
Journal of Industrial & Management Optimization 2019, 15(2): 633-645 doi: 10.3934/jimo.2018062

This paper considers the problem of temporary shortage of some resources within a project execution period. Mathematical models for two different cases of this problem are established. Semidefinite relaxation technique is applied to get immediate solvent of these models. Relationship between the models and their semidefinite relaxations is studied, and some numerical experiments are implemented, which show that these mathematical models are reasonable and feasible for practice, and semidefinite relaxation can efficiently solve the problem.

keywords: Schedule adjustment immediate resource-constrained semidefinite relaxation

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