A Single-period Stochastic Inventory Model Under the Influence of Marketing Policies

A single-period stochastic inventory model is developed under different marketing policies using the concepts of fixed prices and fixed mark-up of prices where discounts are offered on bulk purchases. In the mathematical model shortages are allowed, and it is assumed that any unit unsold at the end of the period has no economic value. The model yields simple solutions for some particular demand distributions. It is illustrated with a suitable example.