Volume 49, Number 5, December 2015
|Page(s)||865 - 878|
|Published online||19 February 2016|
Inventory policy for deteriorating seasonal products with price and ramp-type time dependent demand
1 School of Economics and Management, Shanghai Maritime University, Shanghai 201306, P.R. China
2 College of Arts and Science, Shanghai Maritime University, Shanghai 201306, P.R. China
Received: 14 March 2015
Accepted: 6 September 2015
In this paper, we investigate the problem of simultaneously determining the order quantity and optimal prices for deteriorating products with price and ramp-type time dependent demand. We assume that a retailer has the opportunity to adjust prices before the end of the sales season to increase demand, decrease deterioration, and improve revenues. A mathematical model is developed to jointly optimize the order quantity, time interval for any two successive price changes, and the corresponding prices. An algorithm is provided to find the optimal solution to the proposed model. Finally, we use a numerical example to verify the availability of this model.
Mathematics Subject Classification: 65k05
Key words: Deterioration / dynamic pricing / inventory / ramp-type time dependent demand
© EDP Sciences, ROADEF, SMAI 2016
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