Inventory control and pricing for perishable products under age and price dependent stochastic demand

Kaya O., Ghahroodi S. R.

MATHEMATICAL METHODS OF OPERATIONS RESEARCH, cilt.88, sa.1, ss.1-35, 2018 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 88 Sayı: 1
  • Basım Tarihi: 2018
  • Doi Numarası: 10.1007/s00186-017-0626-9
  • Dergi Adı: MATHEMATICAL METHODS OF OPERATIONS RESEARCH
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1-35
  • Anahtar Kelimeler: Perishable inventory, Pricing, Dynamic programming, Periodic review, Age-dependent demand, OPTIMAL ORDERING POLICIES, TIME-VARYING DEMAND, DETERIORATING INVENTORY, JOINT INVENTORY, DECISIONS, MODEL, SHORTAGES, LIFETIME, RESELLER
  • Anadolu Üniversitesi Adresli: Evet

Özet

Perishable products have a short lifetime and cause a high amount of wastage when managed ineffectively, due to their deterioration over time. We consider coordinated inventory and pricing decisions for perishable products in a periodically-reviewed inventory system with an age and price dependent random demand. We consider the products with a fixed shelf lifetime and use dynamic programming to model this system. We prove certain structural characteristics of the optimal solution and also analyze the effect of different parameters on the optimal solution through numerical experiments. In addition, we analyze simple-to-implement inventory control policies, namely quantity-based and age-based policies, and investigate their effectiveness.