Optimal Pricing Strategies for an Inventory System with Perishable Items and Waiting Time Dependent Order Cancellations

In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. The items unsold by the deadline have a constant salvage value, which we assume to be zero for simplicity. Pricing must be based on cost to create profit; meanwhile, the price of a product should not be too high to dissuade consumers from purchasing. ABSTRACT