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.
|Published - May 2010
|21th Annual Conference of the Production and Operations Management Society - Vancouver, Canada
Duration: 7 May 2010 → 10 May 2010
|21th Annual Conference of the Production and Operations Management Society
|7/05/10 → 10/05/10