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.
|Publication status||Published - May 2010|
|Event||21th Annual Conference of the Production and Operations Management Society - Vancouver, Canada|
Duration: 7 May 2010 → 10 May 2010
|Conference||21th Annual Conference of the Production and Operations Management Society|
|Abbreviated title||POM 2010|
|Period||7/05/10 → 10/05/10|
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.