Optimal dynamic pricing and inventory control with stock deterioration and partial backordering

This paper studies the optimal dynamic pricing and inventory control policies in a periodic-review inventory system with fixed ordering cost and additive demand. The inventory may deteriorate over time and the unmet demand may be partially backlogged. We identify two sufficient conditions under which (s,S,p)(s,S,p) policies are optimal.

► This paper studies dynamic pricing strategies for a periodic-review inventory system.
► There is a fixed cost for each replenishment order and the demand is additive.
► The inventory may deteriorate over time and the unmet demand may be partially backlogged.
► We identify two sufficient conditions under which (s,S,p)(s,S,p) policies are optimal.