Optimizing Inventory and Pricing Policy for Seasonal Deteriorating Products with Preservation Technology Investment

Yong He, Hongfu Huang
2013 Journal of Industrial Engineering  
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
more » ... ed to illustrate the model and the solution procedure. Finally, sensitive analysis of the optimal solution with respect to major parameters is carried out.
doi:10.1155/2013/793568 fatcat:tox2cdnmabf5jhhbhrsp5rbiim