Research On Production,Pricing And Advertising For Deteriorating Items

Deteriorating items,as a common kind of products in life,deteriorate in course of time.This phenomenon damages enterprises' profits as well as social resources,and brings lots of difficulties for management.In the management for deteriorating items,maintenance of inventories and production plan is of a major concern for business organizations.Since it plays a key influence on consumer demand,pricing is also an important marketing leverage for enterprises to increase revenue.Moreover,Advertising is a common communication form that has significant effects on consumers' purchasing behavior,and then becomes a vital marketing strategy of modern enterprises.Consequently,it is of great importance to research the production,pricing and advertising strategies for deteriorating items.This thesis studies the management for deteriorating items on the basis of price-and-goodwill-dependent consumer demand and constant deterioration rate.This thesis firstly establishes a joint optimal dynamic pricing and advertising strategies model to maximize the firm's profit,within a sales period and for a given initial inventory level.A one-manufacturer-one-retailer supply chain for deteriorating items are studied with two different scenarios: the decentralized scenario and the centralized scenario,and cooperative advertising is introduced to investigate its effects on channel performance.This thesis characterizes corresponding strategies,and conducts numerical simulations and sensitivity analysis to further discuss the relationship between strategies and key systems parameters and gain some managerial insights.