An inventory model with advance sales and demand rate dependent on price

A non-multi-cycle inventory model for deteriorateing items with advance sales over the finite time level is established, Then, use dynamic programming method to solve the model, in which demand rate are time-varying and price-dependent, allowing cancellation but paying cancelling fee. For a given ordering time, we get that the profit function is a concave function with sales price and the optimal replenishment policy is presented and a simple algorithm to hunt for the optimal sales policy is given. Finally, we give a numerical example to describe effectiveness about the model.