A new Stochastic Model for Perishable Product pricing

In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the sale of fashion garments, flight seats, and hotel rooms. We present a simple pricing policy which can be used to determine the optimal price at any time and any level of inventory available at that time.