Optimal Pricing and Production Planning for Subscription-Based Products
In this paper, we address the problem of a magazine publishing firm facing stochastic demand over multiple periods. We model the dynamics of customer subscription and retention/attrition.We identify the key decision variables to enhance magazine profitability: production quantity,subscription price and newsstand price.First, we provide a dynamic programming formulation of the firms problem and then propose a single stage reduction which admits a classical newsvendor characterization. For both the finite and infinite horizon cases, we characterize the optimal policy of the firm where the decision variables are one, two or all three of the aforementioned variables. Next, we consider the duopoly setting, where firms benefit from the over ow of the competitors unmet demand, and provide analytic solutions in the case of uniform demand functions. Finally, we report on computational experiments both in the monopolistic and duopolistic settings, and provide managerial insights.
Woonghee Tim Huh Soulaymane Kachani Ali Sadighian
Industrial Engineering and Operations Research Dept. Columbia University, New York 10027
国际会议
2007 International Conference on Manufacturing & Service Operations Management(2007制造与服务运作管理国际学术会议)
北京
英文
2007-06-18（万方平台首次上网日期，不代表论文的发表时间）