a Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, MI 48109, USA
b School of Management, Fudan University, Shanghai, 200433, China
Abstract:
We study a dynamic inventory and pricing optimization problem in a periodic review inventory system with setup cost and finite ordering capacity in each period. We show that the optimal inventory control is characterized by an (s,s′,p) policy in four regions of the starting inventory level.
