The power demand keeps rising with the rapid development of economics and enhancement of industrialization. The contradiction between supply and demand provides energy buy-back programs with great opportunities. This paper considers a periodic review joint pricing and inventory model under an energy buy-back program by incorporating the compensation as well as setup cost over finite planning horizons. At the beginning of each period, a decision maker has to figure out a joint pricing and inventory strategy under an energy buy-back program in order to maximize the expected total profit. It is shown that an policy is optimal with the concept of -convexity when the demand function is additive.
ZHANG Ji-Hong
, DING Xiao-Song
, CHEN Xi. , {{custom_author.name_en}}.
PRICING AND INVENTORY POLICY FOR AN ENERGY BUY-BACK PROGRAM. Journal of Systems Science and Mathematical Sciences, 2011, 31(10): 1297-1305 https://doi.org/10.12341/jssms11709