An Optimal Inventory Pricing and Ordering Strategy Subject to Stock and Price Dependent Demand-Reference-Cited by-同舟云学术

An Optimal Inventory Pricing and Ordering Strategy Subject to Stock and Price Dependent Demand

Published:2021-11-23 Issue: Volume:15 Page:166-170
ISSN:1998-0140
Container-title:International Journal of Mathematical Models and Methods in Applied Sciences
language:en
Short-container-title:

Author:

Tsoularis A.¹,Wallace J.²

Affiliation:

1. Business Rose Bowl Leeds Metropolitan University Portland Crescent, Leeds, LS1 3HB, UK

2. School of Management Bradford University Emm Lane, Bradford, BD9 4JL, UK

Abstract

This article considers the deterministic optimal control problem of profit maximization for inventory replenished at a variable rate and depleted by demand which is assumed to vary with price and stock availability. Optimal policies for the inventor, product order rate and price are derived using the maximum principle. Bounds on the maximum price possible are also derived.

Publisher

North Atlantic University Union (NAUN)

Subject

Applied Mathematics,Computational Mathematics,Mathematical Physics,Modelling and Simulation

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