We analyze a joint inventory and pricing model of a single product over a finite planning horizon with deterministic demand. In this model, an ordering quantity and a price are decided simultaneously at the beginning of each period, demand of the period depends on the price, and a price adjustment cost is incurred if the price is changed from the previous period. We develop polynomial time algorithms to maximize the total profit and discuss their computational complexity.
- Deterministic demands
- Joint inventory and pricing model
- Price adjustment costs
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics