A note on an EOQ model with stock and price sensitive demand

In this paper, we explore the inventory replenishment policy for the kind of items in which the demand is sensitive to stock and selling price. As a matter of fact, the inventory system discussed by this paper is the same as that of Peng-Sheng You et al. [Peng-Sheng You, Yi-Chih Hsieh, An EOQ model with stock and price sensitive demand, Mathematical and Computer Modelling 45(2007)933-942]. However, they only gave the optimal decision rules without price change, with a single price change and with two price changes. Here, for any given nn, the times of price changes, we give a sufficient condition for optimal decision rules and develop the closed form of the optimal prices. Finally, several numerical examples are given to illustrate the theoretical results.