This paper is concerned with the problem of joint replenishment and pricing for a single product with fixed ordering costs and random supply in a fluctuated environment. Assume that the environment comprises a Markov chain and that all of the parameters are dependent on the environment state, such as supply, demand and cost structure, the objective is to maximize the total profit during the whole sales horizon by choosing an appropriate replenishment and pricing policy. Under mild conditions, it is shown that the form of the optimal ordering and pricing policy has an -type. Moreover, the operational effects of random supply on the optimal policy is analyzed, and it is proven that the optimal profit is increasing with the probability of receiving the orders.
YAN Xiaoming LIU Ke. , {{custom_author.name_en}}.
Joint Replenishment and Pricing for Inventory System withRandom Supply and Markov-Modulated Demand. Journal of Systems Science and Mathematical Sciences, 2008, 28(11): 1346-1353 https://doi.org/10.12341/jssms10142
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