RT info:eu-repo/semantics/article
T1 Optimal price and lot size for an EOQ model with full backordering under power price and time dependent demand
A1 San José Nieto, Luis Augusto
A1 Sicilia Rodríguez, Joaquín
A1 González de la Rosa, Manuel
A1 Febles Acosta, Jaime
K1 Inventory control
K1 Production control
K1 Productos comerciales
K1 Gestión de existencias
K1 Commerce
K1 Profit
K1 Modelos matemáticos
K1 EOQ inventory model
K1 Shortages
K1 Lot sizing
K1 Optimal pricing
K1 Profit maximization
AB In this paper, we address an inventory system where the demand rate multiplicatively combines the effects of time and selling price. It is assumed that the demand rate is the product of two power functions, one depending on the selling price and the other on the time elapsed since the last inventory replenishment. Shortages are allowed and fully backlogged. The aim is to obtain the lot sizing, the inventory cycle and the unit selling price that maximize the profit per unit time. To achieve this, two efficient algorithms are proposed to obtain the optimal solution to the inventory problem for all possible parameter values of the system. We solve several numerical examples to illustrate the theoretical results and the solution methodology. We also develop a numerical sensitivity analysis of the optimal inventory policy and the maximum profit with respect to the parameters of the demand function.
PB MDPI
SN 2227-7390
YR 2021
FD 2021
LK https://uvadoc.uva.es/handle/10324/59559
UL https://uvadoc.uva.es/handle/10324/59559
LA eng
NO Mathematics, 2021, Vol. 9, Nº. 16, 1848
NO Producción Científica
DS UVaDOC
RD 08-jul-2024