PRODUCTION-INVENTORY MODEL WITH NON-LINEAR PRICE-STOCK DEPENDENT DEMAND RATE AND PRESERVATION TECHNOLOGY INVESTMENT UNDER COMPLETE BACKLOG

[摘要] In this paper, a production inventory model for deteriorating items with price-stock dependent demand rateunder complete backlog is developed. The deterioration rate is controlled by investment in preservation technologyand optimum preservation cost is obtained. Under these general assumptions, we first proved that the optimal salesprice and optimal preservation investment cost not only exists but is unique, for any given number of the productioncycle. Next, we have shown that the total profit is a concave function of the selling price and production cycle whenthe preservation cost is given. Numerical results demonstrated the proposed model and further shown that the effectsof different system parameters on the optimal variables and the optimal expected profit.

[学科分类] 数学（综合）

[关键词] Inventory;Pricing;Deteriorating items;Price-stock dependent demand;Backlogging;Preservation technology