An optimal inventory pricing and ordering strategy subject to stock and price dependent demand

James Wallace, Anastasious Tsoularis

Research output: Contribution to journalArticlepeer-review

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Abstract

This article considers the deterministic optimalcontrol problem of profit maximization for inventory replenishedat a variable rate and depleted by demand which is assumed tovary with price and stock availability. Optimal policies for theinventor, product order rate and price are derived using themaximum principle. Bounds on the maximum price possible arealso derived.
Original languageEnglish
Pages (from-to)166-170
Number of pages5
JournalInternational Journal of Mathematical models and methods in applied sciences
Volume15
Issue number5
DOIs
Publication statusPublished - 23 Nov 2021

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