Optimizing short-life-product replenishment policy considering random purchase cost increase and incentive-dependent selling rate

To maximize the total revenue and have efficient flow of the supply chain, enterprises engage in implementing quick response and reducing uncertainty of business transition. In this paper, replenishment plan, pricing policy, the effects of scheduling special sale period and purchase-cost increase and lost sale are considered in deteriorating model. We provide a comprehensive analysis to derive the optimal starting time point of special sale, the optimal number of deliveries and the optimal selling price for a deteriorating economic ordering quantity model. The results show that the fixed demand rate, price-dependent demand, the scale of influence on price-dependent demand and risk factor of scheduling special sale are the critical factors in the management of the deteriorating inventory model.