Retailer′s Optimal Pricing and Ordering Policies for Non‐Instantaneous Deteriorating Items with Price‐Dependent Demand and Partial Backlogging | Zendy

Chih-Te Yang | Zendy; LiangYuh Ouyang | Zendy; Hsing-Han Wu | Zendy

Open Access

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

Author(s) -

Chih-Te Yang,

LiangYuh Ouyang,

Hsing-Han Wu

Publication year - 2009

Publication title -

mathematical problems in engineering

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.262

H-Index - 62

eISSN - 1026-7077

pISSN - 1024-123X

DOI - 10.1155/2009/198305

Subject(s) - economic shortage , profit (economics) , variable (mathematics) , sensitivity (control systems) , economics , mathematical optimization , economic order quantity , value (mathematics) , econometrics , mathematics , microeconomics , statistics , engineering , business , supply chain , philosophy , mathematical analysis , linguistics , marketing , electronic engineering , government (linguistics)

An inventory system for non-instantaneous deteriorating items withprice-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

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