Results (
Thai) 1:
[Copy]Copied!
We formulate a model for determining the optimal pricing, order quantity and replenishment period forperishable items with price-dependent and time-dependent demand. The items have a fixed shelf-life,and the demand rate decreases linearly in the selling price and polynomially over the time afterreplenishment, until it vanishes either at the reservation price or at expiration time. We prove that thethree-variable profit maximization problem can be reduced into a single-variable problem, in which thevariable is the duration of the replenishment period. We show that the profit function is strictly pseudo-concave and provide means of obtaining the optimal policy. Three numerical examples are presented todemonstrate the model accompanied by a sensitivity analysis.
Being translated, please wait..
