Optimal Pricing and Ordering Policy for Deteriorating Items with Stock-and-Price Dependent Demand and Presale Rebate

Abstract EN

This paper considers an EOQ inventory model with presale policy for deteriorating items, in which the demand rate depends on both on-hand inventory and selling price.

Under the assumption that all the presale orders are fully backlogged with waiting-time dependent rebate, this study develops several propositions and derives optimal pricing and ordering policy by designing an effective algorithm.

Two numerical examples are also given to illustrate the effectiveness of the algorithm.

Finally, the sensitivity analysis of the main parameters is provided.