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In this paper, we study a dynamic inventory control and pricing optimization problem in a periodic review inventory system with fixed ordering cost and price adjustment cost. At the same time, the ordering quantity is limited. We show that the optimal inventory control is partially characterized by an (s, s', p) policy in four regions, and the optimal pricing policy is dependent on the inventory level after the replenishment decision.

Dynamic Inventory and Pricing Policy with Ordering and Price Adjustment Cost