Nowadays, in order to obtain competitive advantage and increase market share, offering appreciation period has become a commonly adopted method to retailers. Such as, e-shops, department stores, discount stores, furniture stores and chain bookstores. During the appreciation period, customers can make a request to return products for any kind of reason. In addition, by providing advance sales, retailers reduce inventory holding cost and increase market share. Price is viewed as an important vehicle to sell products and enhance revenues. Therefore, in this article, we establish an inventory model for deteriorating items with appreciation period and price-dependent demand for a retailer who offers two-stage advance sales to its customers. We first establish a proper model, and then provide an easy-to-use method to obtain ordering policy for the retailer to achieve its maximum total profit. Finally, a numerical example is given to illustrate the solution procedure
關聯:
The proceeding of the 2015 International Conference in Management Sciences and Decision Making
