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Dynamic pricing and inventory play a respective role. The purpose of inventory is to try best to maintain an even production speed and efficiently ease supply-and-demand contradiction during the production process and among enterprises in the supply chain. However, dynamic pricing aims at maximizing revenues by setting commodities or services at different price levels according to diversified demands of consumers and different commodity or service price evaluation by consumers in different periods. Therefore, it is important for enterprises to optimize their dynamic pricing strategies and commodity inventory so as to maximize value of researches. However, demands for tangible commodities are uncertain. Generally speaking, the commodity demand volume should first be confirmed before any specific analysis. Therefore, this paper focuses on introducing the commodity demand function and relevant factors influencing the commodity demand volume. The utility function describing consumers’ demands for a single commodity is analyzed. The specific power demand function model based on utility maximization is built through the utility function. At last, we conduct an in-depth analysis and simulation of the model.

Commodity Dynamic Pricing and Inventory Joint Decision-Making Model Based on Specific Power Demand Function