Article ID: | iaor20063068 |
Country: | Netherlands |
Volume: | 168 |
Issue: | 1 |
Start Page Number: | 51 |
End Page Number: | 64 |
Publication Date: | Jan 2006 |
Journal: | European Journal of Operational Research |
Authors: | Chang Horng-Jinh, Ouyang Liang-Yuh, Teng Jinn-Tsair, Dye Chung-Yuan |
Keywords: | optimization |
Pricing is a major strategy for a retailer to obtain its maximum profit. Therefore, in this paper, we establish an economic order quantity model for a retailer to determine its optimal selling price, replenishment number and replenishment schedule with partial backlogging. We first prove that the optimal replenishment schedule not only exists but also is unique, for any given selling price. Next, we show that the total profit is a concave function of