Issue |
RAIRO-Oper. Res.
Volume 41, Number 1, January-March 2007
|
|
---|---|---|
Page(s) | 35 - 47 | |
DOI | https://doi.org/10.1051/ro:2007010 | |
Published online | 15 June 2007 |
Optimal times of price reductions for an inventory model with partial backorder and vertical shift demand
Graduate Inst. of Transportation & Logistics,
National Chia-Yi University,
300 Shiue-Fu Road, Chia-Yi 600, Taiwan;
psyuu@mail.ncyu.edu.tw
Received:
5
May
2005
Accepted:
7
September
2006
This paper investigates an inventory control problem where a firm orders and sells an inventory item through discount strategy in a price sensitive market. From the economic points of view, customers may expect a further price reduction when a firm uses pricing promotion to stimulate demand, the demand curve may vertically shift down when a firm reduces the selling price. Taking these phenomena into account, this paper developed a continuous inventory model for finding the ordering quantity, the number of pricing changing and times of price changes simultaneously so as to maximize the total profit. A solution procedure is developed for finding the optimal decision rules.
Key words: Inventory / backorder / deterministic demand / multiple discounts.
© EDP Sciences, ROADEF, SMAI, 2007
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.