Integrating Pricing and Inventory Control: Is it Worth the Effort?

In this paper we first show that the gains achievable by integrating pricing and inventory control are usually small for classical demand functions. We then introduce reference price models and demonstrate that for this class of demand functions the benefits of integration with inventory control are substantially increased due to the price dynamics. We also provide some analytical results for this more complex model. We thus conclude that integrated pricing/inventory models could repeat the success of revenue management in practice if reference price effects are included in the demand model and the properties of this new model are better understood.

Distributed Control Nodes for Material Flow System Controls on the Example of Unit Load Conveyor and Sorter Facilities

The Chair of Transportation and Ware-housing at the University of Dortmund together with its industrial partner has developed and implemented a decentralized control system based on embedded technology and Internet standards. This innovative, highly flexible system uses autonomous software modules to control the flow of unit loads in real-time. The system is integrated into Chair’s test facility consisting of a wide range of conveying and sorting equipment. It is built for proof of concept purposes and will be used for further research in the fields of decentralized automation and embedded controls. This presentation describes the implementation of this decentralized control system.