Study on advance booking discount policy with demand information updated

Advance booking offers an updating opportunity for the retailer to utilize the advanced orders received during the advance selling period to generate a better demand forecast. The pricing problem was imported associated with advance booking discount in this paper. A random programming mathematic model was proposed. The approximate solution was gotten by means of curve fitting. Some conclusions were drawn about the optimal discount rate, the optimal price and the optimal order quantity through analyzing. Numerical results showed that the profit was sensitive to price. Reasonable price would bring large mount of profit for firms. The profit sensitiveness to price also means that it is logical and practical to treat it as a decimal variable. All above conclusions are good instructions for corporations operation.