Optimizing Inventory and Pricing for Substitute Products with Soft Supply Constraints

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dc.coverageDOI: 10.3390/math12111751
dc.creatorMeza, Armando
dc.creatorLatorre, Paolo
dc.creatorBonacic, Milena
dc.creatorLópez-Ospina, Héctor
dc.creatorPérez, Juan
dc.date2024
dc.date.accessioned2025-11-18T19:50:00Z
dc.date.available2025-11-18T19:50:00Z
dc.description<p>This paper presents a profit optimization model for substitute products in a competitive, time-sensitive market with scarcity and shifting user preferences. The model maximizes profit, considering production costs and inventory maintenance. It uses a discrete choice model to represent demand, sensitivity to price, availability, and changing preferences. A two-phase PSO-type metaheuristic solution tackles the nonlinear, recursive model, efficiently managing inventories and evolving consumer preferences. The model integrates production decisions, inventories, and sales prices, considering scarcity conditions and user preferences. It uses a multinomial logit for the consumers’ demand function with soft exogenous constraints, which influence utility and change consumption preferences and choices. This research offers a tool for companies to manage stock, production, and pricing in a context where goods are substitutes, providing a new perspective on business strategy.</p>eng
dc.identifierhttps://investigadores.uandes.cl/en/publications/56fa80c5-0e8a-4b89-8f82-7ff1d956c033
dc.identifier.urihttps://repositorio.uandes.cl/handle/uandes/56391
dc.languageeng
dc.rightsinfo:eu-repo/semantics/openAccess
dc.sourcevol.12 (2024) nr.11
dc.subjectintertemporal
dc.subjectinventory
dc.subjectmultinomial logit
dc.subjectpricing
dc.subjectsubstitute products
dc.titleOptimizing Inventory and Pricing for Substitute Products with Soft Supply Constraintseng
dc.typeArticleeng
dc.typeArtículospa
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