INTEGRATED DYNAMIC PRICING FOR SEASONAL PRODUCTS WITH PRICE AND TIME DEPENDENT DEMAND

Subrata Saha () and Manjusri Basu ()
Additional contact information
Subrata Saha: Department of Mathematics, Institute of Engineering and Management, Salt Lake Electronic Complex, Kolkata-700091, West Bengal, India
Manjusri Basu: Department of Mathematics, University of Kalyani, Kalyani-741235, West Bengal, India

Asia-Pacific Journal of Operational Research (APJOR), 2010, vol. 27, issue 03, 393-410

Abstract: In this paper, an inventory model for deteriorating items with ramp-type time and price dependent consumption rate over a finite planning horizon is considered. In contrast to the traditional deterministic inventory model with static price over the entire planning horizon or fixed number of price changes over the finite time horizon, an alternative model is derived in which prices and the number of price change are to be decision variables. We show that the total profit function is concave. With the concavity, a solution procedure is presented to determine optimal prices, optimal number of pricing cycles and optimal lot size and optimal profit. We illustrate the model with numerical examples. Sensitivity analysis of the model is also carried out.

Keywords: Inventory; deterioration; pricing; time and price dependent ramp-type demand (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595910002764
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:27:y:2010:i:03:n:s0217595910002764

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595910002764

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().