Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6894528 | European Journal of Operational Research | 2018 | 9 Pages |
Abstract
In this work we analyze an inventory model for items whose demand is a bivariate function of price and time. It is supposed that the demand rate multiplicatively combines the effects of a time-power function and a price-logit function. The aim is to maximize the profit per time unit, assuming that the inventory cost per time unit is the sum of the holding, shortage, ordering and purchasing costs. An algorithm is developed to find the optimal price, the optimal lot size and the optimal replenishment cycle. Several numerical examples are introduced to illustrate the solution procedure.
Keywords
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Luis A. San-José, JoaquÃn Sicilia, David Alcaide-López-de-Pablo,