Year: 2012
Type: preprint
Abstract: Group-buying auction has become a popular marketing strategy in the last decade. In this paper, a stochastic model is developed for an inventory system subjects to demands from group-buying auctions. The model discussed here takes into the account of the costs of inventory, transportation, dispatching and re-order as well as the penalty cost of non-successful auctions. Since a new cycle begins whenever there is a replenishment of products, the long-run average costs of the model can be obtained by using the renewal theory. A closed form solution of the optimal replenishment quantity is also derived.
Source: arXiv (Cornell University)
Author: Tai, Allen H.
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2226621973