Journal
RAIRO-OPERATIONS RESEARCH
Volume 56, Issue 5, Pages 3461-3470Publisher
EDP SCIENCES S A
DOI: 10.1051/ro/2022154
Keywords
Optimal strategy; finite ordering capacity; discounted variable cost; periodic review inventory system
Categories
Funding
- National Natural Science Foundation of China [72271221, 71720107003]
- Zhejiang Provincial Natural Science Foundation of China [LY20G010012]
- Shanghai Pujiang Program [17PCJ051]
- Ministry of Education in China Liberal arts and Social Sciences Foundation [18YJC630120, 18YJC630035]
- Management Science and Engineering Academic Discipline Project of Shanghai Dianji University, Shanghai Educational Science Research Project [C2022406]
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In this study, we analyze a periodic review inventory system with finite ordering capacity and assume that the variable ordering cost is discounted when the ordering quantity reaches the capacity. By applying the concept of strong CK-concavity, we demonstrate that the optimal pricing and ordering strategy can be partially characterized by an (S, S ', p) strategy in four different regions, depending on the starting inventory level per period. Numerical experiments validate the proposed strategy.
We study a periodic review inventory system with finite ordering capacity, and assume the variable ordering cost would be discounted when the ordering quantity is the full capacity. Applying the concept of strong CK-concavity, we show that the optimal pricing and ordering strategy could be partially characterized by an (S, S ', p) strategy in four regions depending on the starting inventory level per period. Numerical experiments verify the proposed strategy.
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