If a retailer chooses low prices today, inventory will sell faster, but there might not be enough left for future periods. On the other hand, if prices are set high, the retailer sells less now, but carries over more inventory to the next period. Dynamic programming is a mathematical technique developed in order to solve these types of problems.
However, before it is possible to solve these problems, our statisticians and economists must have knowledge of various parameters.
Singlee price points
Multiple price points