Optimizing Inventory and Pricing Policy for Seasonal Deteriorating Products with Preservation Technology Investment. (4th April 2013)

• Record Type: Journal Article
• Authors: He, Yong; Huang, Hongfu
• Other Names: Wang Kung-Jeng Academic Editor.
• Is Part Of: Journal of industrial engineering. Volume 2013(2013)
• Publication Date: 2013-04-04
• Subjects: Industrial engineering -- Periodicals; Industrial engineering; Periodicals; 620
• DOI: 10.1155/2013/793568
• Languages: English
• ISSNs: 2314-4882

Abstract

Abstract : The paper studies a kind of deteriorating seasonal product whose deterioration rate can be controlled by investing on the preservation efforts. In contrast to previous studies, the paper considers the seasonal and deteriorating properties simultaneously. A deteriorating inventory model is developed for this problem. We also provide a solution procedure to find the optimal decisions about the preservation technology investment, the market price, and the ordering frequency. Then a case study is used to illustrate the model and the solution procedure. Finally, sensitive analysis of the optimal solution with respect to major parameters is carried out.