Determination of the selling price of the seasonal product with Bayesian updating

• Main Authors: Jian-yi Shen, 沈建儀
• Other Authors: Yingchieh Yeh
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/38524198150956097727

碩士 === 國立中央大學 === 工業管理研究所 === 98 === In this thesis, we consider the determination of pricing policy for a retailer that maximizes the profit from selling a given inventory of seasonal products by a fixed deadline. The concept of this study is based on Bitran and Mondschein (1997). Different from their concept, we set a scale variable, and use the past history of the demand during the planning horizon to update the scale variable by using Bayesian method and showing how it can be embedded in our updating model. Our aim is trying to estimate the scale variable. Finally, we embed it into optimal pricing model and find the appropriate selling price than the original selling price during each sales period, and even show how it can bring more profit during the sales season for the decision maker.