Influence Analysis for Supply Uncertainty on Decisions of Retailer of Limited Sales Cycle Products

In this paper, we study how retailers of limited sales cycle products order and price under supply uncertainty. Firstly, the whole sales period is divided into a number of sales cycles. Then, dynamic programming algorithm is adopted to establish the optimal profit model. Next, respectively in the case of the demand and supply analyze the optimal ordering and pricing decisions. Finally, illustrate the conclusions by numerical analysis. Through model analysis and numerical analysis, we conclude that within each sales cycle retailers can make sales equal to the inventory in order to weaken the impact of supply uncertainty by adjusting price and in the demand situation, supply uncertainty has a significant effect on the retailer's earnings.