The deteriorating inventory model with reference price

• Main Authors: Chin Ling-Liu, 劉錦鈴
• Other Authors: 孔方正
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/64368217148234023304

碩士 === 樹德科技大學 === 經營管理研究所 === 103 === In this paper, we propose a pricing decision for a deteriorating inventory system with time-and-price sensitive demand and reference price effects. A generalized model is presented to jointly determine the optimal selling price and replenishment strategies which maximize the retailer’s total profit. Starting with some mild assumptions, we derive some theoretical results to show the existence of the optimal solution for a single-period deteriorating inventory problem, and reveal the sensitivities of the optimal pricing decision to the model parameters. Finally, some numerical examples and sensitivity analysis are given to illustrate the features of the proposed model, which is followed by concluding remarks.