Perishable inventory problem with two types of customers and different selling prices

Perishable inventory problem with two types of customers and different selling prices

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Article ID: iaor19951219
Country: Japan
Volume: 36
Issue: 4
Start Page Number: 199
End Page Number: 205
Publication Date: Dec 1993
Journal: Journal of the Operations Research Society of Japan
Authors:
Keywords: probability, programming: convex
Abstract:

This paper discusses an inventory control model for a single perishable product with two types of customers and different selling prices. This model is a one period horizon model and a generalization of Nahmias model and Nose et al. model. Especially the model takes sensitive customers to freshness of commodities into consideration and treats two types of customers. Moreover, in the model there exist different selling prices according to the remaining lifetime of commodity to be sold. In the situation, an optimal ordering policy to maximize the expected profit is derived.

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