An Optimal Inventory Policy for Subsequent Price Reduction Problem

Optimal lateral transshipment policy for a two location inventory problem

We consider an inventory model for spare parts with two stockpoints, providing repairable parts for a critical component of advanced technical systems. As downtime costs for these systems are huge, ready-for-use spare parts are kept on stock, to be able to quickly respond to a breakdown of a system. We allow for lateral transshipments of parts between the stockpoints upon a demand arrival for a...

Optimal Inventory Policy

Infinite Horizon Optimal Policy for an Inventory System

In this paper, we consider a periodic review inventory system and present its optimal policy in the infinite horizon setting. The optimal inventory policy that maximizes the infinite horizon expected discounted profit for the model is analytically obtained and proved to be an order-up-to policy. Results are also provided that elucidate the operations of the inventory system in the long run. Thi...

Combined Optimal Price and Optimal Inventory Ordering Policy with Income Elasticity

In the present paper, the effect of income elasticity on demand has been considered and the buyer’s optimal special order quantity and optimal time has been determined, when supplier reduces sale price then buyer may offer a discount to push his sale to increase his profit margin. Income elasticity effect in inventory analysis has been introduced to obtain the gain equation to find the optimal ...

Price Discount and Stochastic Initial Inventory in the Newsboy Problem

Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers off...