Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments

Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments

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Article ID: iaor199890
Country: United Kingdom
Volume: 24
Issue: 6
Start Page Number: 539
End Page Number: 547
Publication Date: Jun 1997
Journal: Computers and Operations Research
Authors: ,
Keywords: optimization
Abstract:

This article deals with the problem of determining the retailer's optimal price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is represented by a constant price elasticity function. It is assumed that inventory is depleted not only by customer's demand but also by deterioration. Investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated using an example problem.

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