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.
|Number of pages||5|
|Journal||International Journal of Mathematical models and methods in applied sciences|
|Publication status||Published - 23 Nov 2021|