Optimizing the pricing and replenishment policy for non-instantaneous deteriorating items with stochastic demand and promotional efforts

@article{Maihami2014OptimizingTP,
  title={Optimizing the pricing and replenishment policy for non-instantaneous deteriorating items with stochastic demand and promotional efforts},
  author={Reza Maihami and Behrooz Karimi},
  journal={Computers & OR},
  year={2014},
  volume={51},
  pages={302-312}
}
Retailer promotional activity has become prevalent in the business world. Promotional efforts impact the replenishment policy and the sale price of goods. In this paper, the problem of replenishment policy and pricing for noninstantaneous deteriorating items subject to promotional effort is considered. We adopt a price dependent stochastic demand function in which shortages are allowed and partially backlogged. The major objective is to simultaneously determine the optimal selling price, the… CONTINUE READING