Optimal pricing and inventory decisions for fashion retailers under value-at-risk objective : applications and review

C.H. Chiu, J.H. Zheng, Tsan Ming Choi

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic research

Abstract

Motivated by the popularity of Value-at-Risk (VaR) objective in finance, this chapter reviews and studies its application in fashion retail operations management. First, a formal optimization model is reviewed in which the fashion retailer aims at optimizing a VaR objective with both pricing and inventory decisions. Second, the detailed solution schemes are explored. Third, numerical examples are included to illustrate applications of the proposed models. Fourth, the performance of pure buyback contract and pure wholesale pricing contract in enhancing supply chain efficiency is examined. Insights are generated and future research directions are outlined.
Original languageEnglish
Title of host publicationFashion supply chain management : industry and business analysis
PublisherBusiness Science Reference/IGI Global
Pages100-109
Number of pages10
ISBN (Electronic)9781609607579
ISBN (Print)9781609607562, 9781609607586
DOIs
Publication statusPublished - 2012

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