A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain

Mingming LENG, Mahmut PARLAR

Research output: Other Conference ContributionsConference Paper (other)Other Conference Paper

Abstract

We investigate a single-period pricing and stocking decision problem faced by an assemble-to-order (ATO) firm which sells a single product to satisfy price-dependent demand in multiplicative or additive form. The ATO firm assembles products only when its customers' orders arrive. We show that there is a unified result regarding the stocking factor for both the multiplicative and the additive demand cases, whereas there is no unified result regarding the base price for the two demand cases. Our result for the base price is different from Petruzzi and Dada (1999) in which, for both stocking factor and safety stock, there are unified results for the two demand cases.
Original languageEnglish
Publication statusPublished - May 2010
Event21th Annual Conference of the Production and Operations Management Society - Vancouver, Canada
Duration: 7 May 201010 May 2010
https://www.pomsmeetings.org/ConfProceedings/015/

Conference

Conference21th Annual Conference of the Production and Operations Management Society
Abbreviated titlePOM 2010
CountryCanada
CityVancouver
Period7/05/1010/05/10
Internet address

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Factors
Supply chain
Assemble-to-order
Price-dependent demand
Safety stock
Pricing

Cite this

LENG, M., & PARLAR, M. (2010). A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain. Paper presented at 21th Annual Conference of the Production and Operations Management Society, Vancouver, Canada.
LENG, Mingming ; PARLAR, Mahmut . / A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain. Paper presented at 21th Annual Conference of the Production and Operations Management Society, Vancouver, Canada.
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LENG, M & PARLAR, M 2010, 'A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain' Paper presented at 21th Annual Conference of the Production and Operations Management Society, Vancouver, Canada, 7/05/10 - 10/05/10, .

A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain. / LENG, Mingming; PARLAR, Mahmut .

2010. Paper presented at 21th Annual Conference of the Production and Operations Management Society, Vancouver, Canada.

Research output: Other Conference ContributionsConference Paper (other)Other Conference Paper

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AU - PARLAR, Mahmut

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N2 - We investigate a single-period pricing and stocking decision problem faced by an assemble-to-order (ATO) firm which sells a single product to satisfy price-dependent demand in multiplicative or additive form. The ATO firm assembles products only when its customers' orders arrive. We show that there is a unified result regarding the stocking factor for both the multiplicative and the additive demand cases, whereas there is no unified result regarding the base price for the two demand cases. Our result for the base price is different from Petruzzi and Dada (1999) in which, for both stocking factor and safety stock, there are unified results for the two demand cases.

AB - We investigate a single-period pricing and stocking decision problem faced by an assemble-to-order (ATO) firm which sells a single product to satisfy price-dependent demand in multiplicative or additive form. The ATO firm assembles products only when its customers' orders arrive. We show that there is a unified result regarding the stocking factor for both the multiplicative and the additive demand cases, whereas there is no unified result regarding the base price for the two demand cases. Our result for the base price is different from Petruzzi and Dada (1999) in which, for both stocking factor and safety stock, there are unified results for the two demand cases.

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LENG M, PARLAR M. A Note on Optimal Stock Factor and Base Price for an Assembly Supply Chain. 2010. Paper presented at 21th Annual Conference of the Production and Operations Management Society, Vancouver, Canada.