Abstract:

This paper considers the inventory system in which the supplier may provide a short-term price discount to retailers at future time and retailers may make two special orders during the special period. For this system, based on maximizing the retailer's profit, we establish an optimal replenishment and stocking model. To solve the model, we first present several modified ordering policies for the model on the basis of the economic ordering strategy, and then establish a global optimal ordering policy for the inventory model. The given numerical experiments show the validity of the model and the efficiency of the algorithm.

Key words: inventory, short-term price discount, special ordering, replenishing strategy