Competitive analysis of interrelated price online inventory problems with demands

Shuguang Han, Jueliang Hu, Diwei Zhou

Abstract


This paper investigates interrelated price online inventory problems, in which decisions as to when and how much of a product to replenish must be made in an online fashion to meet some demand even without a concrete knowledge of future prices. The objective of the decision maker is to minimize the total cost while meeting the demands. Two different types of demand are considered carefully, that is, demands which are linearly and exponentially related to price. In this paper, the prices are online, with only the price range variation known in advance, and are interrelated with the preceding price. Two models of price correlation are investigated, namely, an exponential model and a logarithmic model. The corresponding algorithms of the problems are developed, and the competitive ratios of the algorithms are derived as the solutions by use of linear programming.

doi:10.1017/S144618111700013X

Keywords


interrelated prices, online inventory problem, competitive analysis, demand.



DOI: http://dx.doi.org/10.21914/anziamj.v58i0.10989



Remember, for most actions you have to record/upload into this online system
and then inform the editor/author via clicking on an email icon or Completion button.
ANZIAM Journal, ISSN 1446-8735, copyright Australian Mathematical Society.