A Study On Combined Pricing And Inventory Control Based On Random Yield

In the combined pricing and inventory control models, we study the retailer'soptimal control policies provided that the supply is certain. However, in real-ity, the cases of uncertain supply are numerous, for example, problems such asunexpected machine problem, natural disasters, transportation all can cause sup-ply interruption, thereby aecting the replenishment and pricing decisions of theproduct. So, it is important to study the joint pricing and inventory control withrandom yield, which not only has great realistic signicance to reduce the im-pact of the downstream enterprisers or customers, but also has great theoreticalsignicance for the researchers on inventory theory.In this paper, we study a nite horizon, single product, periodic review modelwhere pricing and inventory decisions are made simultaneously with random yield.More specically, demands in each period are independent random variables andtheir distributions depend on the production price. Ordering costs include botha xed cost and a variable cost. All shortages are backordered. Our object is tomaximize the total expected prot over the nite horizon by choosing the optimalreplenishment and pricing policies. When the demand function is additive, werst construct the optimality equation by using dynamic programming technology,then prove that the optimal value functions are ( +1)-concave and the optimalcombined control strategies are (,,) policies, where the reorder point increases as to the arrival probability .An example is given to illustrate ourmodel and results. Furthermore,we study the joint pricing and inventory controlproblem based on random yield under the Markovian demand environment, andalso obtain the optimal combined control strategies are state-dependent (,,)policies.This paper is divided into four chapters. In chapter one, we briey introducethe background, the domestic and international state of the research, and ourmain work and contribution. In chapter two, we introduce some basic knowledgeabout the dynamic programming, -convex and symmetric--convex function.In chapter three, we study the joint pricing and inventory control problem based onrandom yield, obtain the optimal combined control strategies, and give an exampleto illustrate our results. In chapter four, we further study the joint pricing andinventory control problem based on random yield under the Markovian demand environment, and also obtain the optimal combined control strategies.