Issue |
RAIRO-Oper. Res.
Volume 56, Number 5, September-October 2022
|
|
---|---|---|
Page(s) | 3461 - 3470 | |
DOI | https://doi.org/10.1051/ro/2022154 | |
Published online | 12 October 2022 |
Optimal strategy for a periodic review inventory system with discounted variable cost and finite ordering capacity
1
School of Management, Zhejiang University of Technology, Hangzhou 310023, P.R. China
2
Business School, Shanghai Dianji University, Shanghai 201306, P.R. China
3
School of Statistics, Southwestern University of Finance and Economics, Chengdu 610000, P.R. China
4
Department of Economics and Management, University of Geneva, 1211 Geneva, Switzerland
* Corresponding author: yangbm@sdju.edu.cn
Received:
21
December
2021
Accepted:
30
August
2022
We study a periodic review inventory system with finite ordering capacity, and assume the variable ordering cost would be discounted when the ordering quantity is the full capacity. Applying the concept of strong CK-concavity, we show that the optimal pricing and ordering strategy could be partially characterized by an (S, S′, p) strategy in four regions depending on the starting inventory level per period. Numerical experiments verify the proposed strategy.
Mathematics Subject Classification: 90B05 / 90C39
Key words: Optimal strategy / finite ordering capacity / discounted variable cost / periodic review inventory system
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
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