Essays in perishable inventory management
Abstract/Contents
- Abstract
- This dissertation considers a retailer that sells a perishable product over an infinite time horizon whose quality deteriorates over time. The retailer jointly decides whether to issue the oldest (First-In-First-Out or FIFO) or newest (Last-In-First-Out or LIFO) stock first to consumers and when to remove unsold items from shelf to maximize the objective which is a linear combination of the long-run average profits and customer welfare. We show that contrary to the industry norm that issuing items according to the FIFO issuance while keeping inventory as long as possible is optimal, using the LIFO issuance and pulling inventory from shelf early can be optimal if the product is highly perishable and the salvage value is sufficiently large. We also find when customers are heterogeneous in their utility per quality, the retailer may prefer to provide information about the age of individual items to customers to exploit customers' heterogeneity. We base our analysis on the notion of rational expectations equilibrium in which customers and the retailer make optimal decisions based on their rational expectations regarding product quality and customers' shopping behaviors.
Description
| Type of resource | text |
|---|---|
| Form | electronic resource; remote; computer; online resource |
| Extent | 1 online resource. |
| Place | California |
| Place | [Stanford, California] |
| Publisher | [Stanford University] |
| Copyright date | 2020; ©2020 |
| Publication date | 2020; 2020 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Author | Park, Jaehyuck |
|---|---|
| Degree supervisor | Iancu, Dan |
| Degree supervisor | Plambeck, Erica L |
| Thesis advisor | Iancu, Dan |
| Thesis advisor | Plambeck, Erica L |
| Thesis advisor | Whang, Seungjin |
| Degree committee member | Whang, Seungjin |
| Associated with | Stanford University, Graduate School of Business |
Subjects
| Genre | Theses |
|---|---|
| Genre | Text |
Bibliographic information
| Statement of responsibility | Jaehyuck Park. |
|---|---|
| Note | Submitted to the Graduate School of Business. |
| Thesis | Thesis Ph.D. Stanford University 2020. |
| Location | electronic resource |
Access conditions
- Copyright
- © 2020 by Jaehyuck Park
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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