BEGIN:VCALENDAR
PRODID:-//eluceo/ical//2.0/EN
VERSION:2.0
CALSCALE:GREGORIAN
BEGIN:VEVENT
UID:cf15acac96a807c8b0478b1decaf81bd
DTSTAMP:20240428T162023Z
SUMMARY:Dynamic Pricing and Replenishment with Customer Upgrades
DESCRIPTION: \n\nThe Department of Decision Sciences invites you to attend 
 Dynamic\nPricing and Replenishment with Customer Upgrades Speaker: Oben Ce
 ryan\,\nPh.D.\, Assistant Professor in Decision Sciences\, Drexel Universi
 ty\nFriday\, June 6th\, 2014\, 11:30 am - 12:30 p.m. Gerri C. LeBow Hall\,
 \nRoom 722\n\nFor more information\, please contact Wenjing Shen at\nwenji
 ngs@drexel.edu.\n\nAbstract We study a joint implementation of dynamic pri
 cing and\nfirm-driven customer upgrades as means of price- and\navailabili
 ty-based product substitutions to better match demand and\nconstrained sup
 ply across substitutable products. Specifically\, we\nconsider a multiple 
 period\, nested two-stage model where a firm\noffering partially substitut
 able and vertically differentiated\nproducts first sets prices and the rep
 lenishment levels for each\nproduct while the demand is still uncertain. A
 fter observing the\ndemand\, it then decides how many (if any) of the cust
 omers to upgrade\nto a higher quality product. We characterize the structu
 re of the\noptimal upgrade policy as well as the optimal pricing and\nrepl
 enishment policies. We show that optimal upgrade decisions follow\na modif
 ied rationing threshold policy\, the replenishment decisions\nfollow modif
 ied base stock policies\, and the pricing decisions can be\ncharacterized 
 by regions of list prices\, price discounts and price\nsurcharges. Regardi
 ng the impact of offering product upgrades to\ncustomers on the optimal pr
 icing policy\, we find that offering\nupgrades leads to a selection of dyn
 amic prices that assists in\npreserving the vertical price differentiation
  of the products by\nmaintaining a higher price difference between the pro
 ducts.\n\nBiography Oben Ceryan is an Assistant Professor of Decision Scie
 nces\nat LeBow College of Business\, Drexel University. He received his Ph
 D\nand MS degrees from the University of Michigan\, and his undergraduate\
 ndegree from Bogazici University. His primary research interests\ninclude 
 pricing and revenue management\, supply chain management\, and\nmodeling a
 nd control of production systems. Specifically\, his recent\nwork studies 
 the interplay between firms’ supply and demand side\ndecisions such as i
 mplementations of resource flexibility\, dynamic\npricing\, and customer u
 pgrades. His work has appeared in Manufacturing\n& Service Operations Mana
 gement and IIE Transactions (where one of his\npublications was selected a
 s a Featured Article).\n 
DTSTART:20140606T153000Z
DTEND:20140606T163000Z
LOCATION:Gerri C. LeBow Hall\, 3220 Market Street\, 722\, Philadelphia\, PA
  19104
END:VEVENT
END:VCALENDAR