Researches On Ordering Policy For The Retailer's Multi-Generation Products Revenue Management In The Environment Of Trading In

The revenue management has been the efficient tool in solving the problems of inventory of multi-generation products and other relevant problems in the recent ten years. It optimizes the enterprises'existing resources by scientific prediction of market requirements and reasonable inventory without increasing costs. Firstly it is widely used in such service industry as aviation and gets good results, then it is gradually applied in other service industry: hotel, medical treatment, tourism, railway transportation car rental, and broadcasting. Multi-generation products, in terms of requirement fluctuation, value of perishability, and discrimination of prices, have similar characteristics with those products traditionally applying revenue managements, such as seats on planes, rooms in hotels, vehicles for renting. The trade-in emerged. Quickly the trade-in is accepted by our society. The solution to the inventory of multi-generation products with the idea of revenue management is a new way of thinking, which can strongly support the multi-generation products enterprises to increase profits, lessen financial problems. Based on the idea of revenue management, together with the characteristics of multi-generation products, this thesis carries out the following researches into the ordering of revenue management of multi-generation products in the environment of trade-in:The ordering issues of the retailer's multi-generation products revenue management are reviewed. First, the origins, concept, structure e.g. of multi-generation products are summarized. Then, three aspects are reviewed, which are inventory control of the Revenue Management, the Revenue Management of multi-generation products, and the Revenue Management of multi-generation products in the environment of Trade-in. It's a well base for the solution and analysis following up.This paper begins from the newsboy model that is widely used to solve the problem of the revenue management's inventory control, defines the order quantity of the multi-generation products as decision variables and initial price of the multi-generation products as static variables, and taking the characteristic parameters of the trade-in policy into account, and develops a ordering model for the retailer's multi-generation products revenue management in the environment of trade-in. Basing on the ordering model for the retailer's multi-generation products revenue management in the environment of trade-in, considering customers'choice characteristic parameters, the paper develops a ordering model for the retailer's multi-generation products revenue management in the environment of trade-in that takes customers'choice into account.This paper employs optimization theory and method to derive the optimal order quantity, thereby, derives the maximum profit for the Retailer. Then compare and analyze two model t find that the policy of the trade-in will bring more period-profit for the Retailer.Finally, a summary of the full text is brought, which sums up the conclusions and contribution of this paper, points out the inadequacy, and further research directions.