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Open Access

An Optimal Pricing and Ordering Policy with Trapezoidal-Type Demand Under Partial Backlogged Shortages

Institute of Operations Research and Systems Engineering, College of Science, Tianjin University of Technology, Tianjin 300384, China
School of Electrical and Electronic Engineering, TianjinUniversity of Technology, Tianjin 300384, China
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Abstract

Based on the retail inventory operation of Heilan Home, this study incorporates the price factor into inventory environment involving trapezoidal time-varying products. A joint pricing and ordering issue with deteriorating items under partial backlogged shortages is firstly explored in a fixed selling cycle. The corresponding optimization model aiming at maximizing profit performance of inventory system is developed, the theoretical analysis of solving the model is further provided, and the modelling frame generalizes some inventory models in the existing studies. Then, a solving algorithm for the model is designed to determine the optimal price, initial ordering quantity, shortage time point, and the maximum inventory level. Finally, numerical examples are presented to illustrate the model, and the results show the robustness of the proposed model.

Keywords

inventorypricingtrapezoidal-type demanddeteriorating itemspartial backlogged shortages

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Tsinghua Science and Technology
Volume 29 Issue 6,
December 2024
Pages 1709-1727
DOI: 10.26599/TST.2023.9010040
Cite this article:
Xu C, Bai M, Wu C, et al. An Optimal Pricing and Ordering Policy with Trapezoidal-Type Demand Under Partial Backlogged Shortages. Tsinghua Science and Technology, 2024, 29(6): 1709-1727. https://doi.org/10.26599/TST.2023.9010040

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Received: 12 December 2022
Revised: 09 March 2023
Accepted: 04 May 2023
Published: 20 June 2024
© The Author(s) 2024.

The articles published in this open access journal are distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/).
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