Article Contents
Article Contents

# Pricing and replenishment strategy for a multi-market deteriorating product with time-varying and price-sensitive demand

• Due to globalization and technological advances, increasing competition and falling prices have forced enterprises to reduce cost; this poses new challenges in pricing and replenishment strategy. The study develops a piecewise production-inventory model for a multi-market deteriorating product with time-varying and price-sensitive demand. Optimal product pricing and material replenishment strategy is derived to optimize the manufacturer's total profit. Sensitivity analyses of how the major parameters affect the decision variables were carried out. Finally, the single production cycle is extended to multiple production cycles. We find that the total profit for multiple production cycle increases 5.77/100 when compared with the single production cycle.
Mathematics Subject Classification: Primary: 58F15, 58F17; Secondary: 53C35.

 Citation:

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