Abstract
This paper developed an on-going deteriorating inventory model for a single item. Stochastic fluctuating demand patterns is concerned which decreases with the price of items. Deteriorating rate is constant and replenishment rate is infinite. Replenishment lead time is a constant. Continuous review (s, S) inventory policy is adopted which means an order to replenish the inventory to S is placed when current inventory level drops to s. Demand in each replenishment cycle forms a regenerative process. Our objective is to find the joint optimal pricing and replenishment policies to maximize the expected total average profit of the system. This problem can be simplified as a deterministic problem which can be solved by genetic algorithms. The detailed procedure of algorithm is listed. Finally, a numerical example is given which is simulated by Matlab 7.0.
This work is partially supported by Youth Research Fund of China University of Mining and Technology#2008A029 to Y. Feng.
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Feng, Y., Zhang, Y. (2011). Joint Pricing and Replenishment Policies for a Deteriorating Inventory Model with Stochastic Demand. In: Zhang, J. (eds) Applied Informatics and Communication. ICAIC 2011. Communications in Computer and Information Science, vol 226. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23235-0_84
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DOI: https://doi.org/10.1007/978-3-642-23235-0_84
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