Optimal pricing and lot-sizing under conditions of perishability and partial backordering
Article Abstract:
A generalized model of dynamic pricing lot-sizing by a reseller selling perishable goods is formulated. The model is a generalization of the model developed by Rajan et al. (1992) because it allows demand to be partially backlogged. Resellers may resort to backlogging as a strategy to control costs, particularly when the good is highly perishable, when customers are agreeable to wait to get fresh stock. The model assumes that the reseller may change price within the inventory cycle as a consideration of the product age and the value drop related to the product. Examples of these situations include speciality items sold by ethnic shops or delis, or special items vended by grocery stores in specific locations. Results indicate that the optimal dynamic price is independent of theta and psi, which means that the pricing and inventory control problem can be sequentially solved in the proposed model.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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A Transportation Type Aggregate Production Model with Backordering
Article Abstract:
Linear Programming models is one method used to solve aggregate scheduling problems. A generalization of Bowman's aggregate scheduling problem is given. It permits backordering of future demand. A noniterative method is developed. Tables present solution procedures.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1983
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Flow Shop Problems with Time Lags
Article Abstract:
A model is developed that covers multimachine extensions of existing flow-shop problems with time lags. Also covered are flow-shop problems where setup, processing and release times are separated. Results of the model are presented.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1983
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