Pricing andinventorymanagementinasystemwithmultiplecompeting retailers under(r, Q) policies

We consideramulti-retailersystemoperatedonaninfinitehorizon,inwhicheachretailerfaces stochasticdemandfollowingaPoissonprocessandadoptsacontinuous-review(r, Q) policyfor replenishinginventorytosatisfycustomerdemand.Thesysteminvolvesdecisionsofpricingand inventorymanagementwiththegoalofmaximizingprofit,whichequalsthesalesrevenueminusthe purchase andinventorycosts.TakingCournotcompetitionintoaccount,modelsareformulatedto optimizesimultaneouslytheexpectedsalesvolumesand(r, Q) policiesofallretailers.Anefficient approachisproposedtocalculatetheapproximateinventorycost.Basedonthisapproach,solution methodsforcentralizedanddecentralizedscenariosaredeveloped.Agreatnumberofnumerical computationsareprovidedtoevaluatetheefficiencyofthesolutionmethods,andtheirperformancein the twoscenarios.Moreover,systemperformanceundersequentialdecisions(firstpricingandthen inventorymanagement)isalsoinvestigated.