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Author: | Lau, A. H. L. Lau, H.-S. |
Title: | Effects of a demand-curve's shape on the optimal solutions of a multi-echelon inventory/pricing model |
Journal: | European Journal of Operational Research
2003 : JUN, VOL. 147:3, p. 530-548 |
Index terms: | Demand functions Pricing Price control |
Language: | eng |
Abstract: | The paper applies different demand-curve functions to a simple inventory/pricing model, and shows that while the common-wisdom implication is valid for a single-echelon system, assuming different demand-curve functions can lead to very different results in a multi-echelon system. In some situations, a very small change in curve functions can lead to very different results in a multi-echelon system. |
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