Computers and Operations Research
Computers and Operations Research
Optimal price and order size for a reseller under partial backordering
Computers and Operations Research
Joint pricing and ordering policy for a deteriorating inventory
Computers and Industrial Engineering
A retailer's decision process when anticipating a vendor's temporary discount offer
Computers and Industrial Engineering
On the optimality of multi item integrated production inventory systems
ASMCSS'09 Proceedings of the 3rd International Conference on Applied Mathematics, Simulation, Modelling, Circuits, Systems and Signals
AMERICAN-MATH'10 Proceedings of the 2010 American conference on Applied mathematics
On the optimality of multi item integrated production inventory systems with variable parameters
AMERICAN-MATH'10 Proceedings of the 2010 American conference on Applied mathematics
On conflict and cooperation in a two-echelon inventory model for deteriorating items
Computers and Industrial Engineering
Computers and Industrial Engineering
Proceedings of the Winter Simulation Conference
Proceedings of the Winter Simulation Conference
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In this article, we consider an infinite horizon, single product economic order quantity where demand and deterioration rate are continuous and differentiable function of price and time, respectively. In addition, we allow for shortages and completely backlogged. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infinite horizon. For any given selling price, we first prove that the optimal replenishment schedule not only exists but is unique. Next, we show that the total profit per unit time is a concave function of price when the replenishment schedule is given. We then provide a simple algorithm to find the optimal selling price and replenishment schedule for the proposed model. Finally, we use a couple of numerical examples to illustrate the algorithm.