Order Policy Analysis for Deteriorating Inventory Model with Trapezoidal Type Demand Rate

In this article, we extend Cheng, Zhang and Wang [17] model studied pricing strategies in marketing. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infinite horizon. It is important to control and maintain the inventories of deteriorating items for the modern corporation. We will discuss two models: one is without shortage, and the other is with shortage. By using the subroutine Find Root in commercial software Mathematical 5.2, we obtain the optimal solutions In this paper, we assume that the inventory objective is to minimize the total cost per unit time of the system.