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Optimal dynamic pricing and inventory control with stock deterioration and partial backordering. (English) Zbl 1235.90014
Summary: This paper studies the optimal dynamic pricing and inventory control policies in a periodic-review inventory system with fixed ordering cost and additive demand. The inventory may deteriorate over time and the unmet demand may be partially backlogged. We identify two sufficient conditions under which (\(s,S,p\)) policies are optimal.

90B05 Inventory, storage, reservoirs
90C39 Dynamic programming
91B24 Microeconomic theory (price theory and economic markets)
Full Text: DOI
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