Retailer's Optimal Pricing and Ordering Policies for Non-Instantaneous Deteriorating Items with Price-Dependent Demand and Partial Backlogging

By Chih-te Yang, Liang-Yuh Ouyang, Hsing-Han Wu. 2009

58 citations recorded by the source corpus.

An inventory system for non-instantaneous deteriorating items with price-dependent demand is formulated and solved. A model is developed in which shortages are allowed and partially backlogged, where the backlogging rate is variable and dependent on the waiting time for the next replenishment. The major objective is to determine the optimal selling price, the length of time in which there is no inventory shortage, and the replenishment cycle time simultaneously such that the total profit per unit time has a maximum value. An algorithm is developed to find the optimal solution, and numerical examples are provided to illustrate the theoretical results. A sensitivity analysis of the optimal solution with respect to major parameters is also carried out.

Subfields: Industrial and Manufacturing Engineering, Management Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c6db2e54db26a6ac9268c3bf1de8f26da87c317b

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In Industrial and Manufacturing Engineering

In Management Information Systems

In Strategy and Management

Citations in the corpus

Optimal pricing and ordering policies for non-instantaneously deteriorating items under order-size-dependent delay in payments (2015, background): “[16] developed a model in which shortages are accepted and partially backlogged with a variable backlogging rate dependent on the waiting time for the next replenishment.”