Optimal dynamic pricing and inventory control with stock deterioration and partial backordering

Pang, Zhan (2011) Optimal dynamic pricing and inventory control with stock deterioration and partial backordering. Operations Research Letters, 39 (5). pp. 375-379. ISSN 0167-6377

Abstract

This paper studies the optimal dynamic pricing and inventory control policies in a periodic-review inventory system with fixed ordering cost and additive demand. The inventory may deteriorate over time and the unmet demand may be partially backlogged. We identify two sufficient conditions under which (s,S,p) policies are optimal.