Optimal inventory replenishment strategy for deteriorating items in a demand‐declining market with the retailer’s price manipulation

Due to rapid technological innovation and global competitiveness, the demand of many fashion‐typed products usually decline significantly over time. A retailer facing such a market can employ replenishment strategies to increase its profit. This study, from the perspective of the retailer in a two‐echelon supply chain, develops the optimal replenishment strategy for products experiencing deterioration, continuous decrease in market demand and price changes. This model help determine the optimal product life for products. Numerical examples are systematically conducted to verify the performances of the proposed model.