摘要：In this study, a single product is considered which starts to deteriorate with constant rate of replenishment and demand rate is time and price dependent exponential function. Shortage is allowed with partial back logging and the relationship between backorder rate and waiting time is considered to be exponential. The aim is to decide pricing strategy and maximize total average profit function. Total profit function is optimized analytically and proved to be concave function of price. Finally, numerical example is given to illustrate the implementation of the algorithm followed by the sensitivity analysis.
关键词：Instantaneous deterioration;Price discount;Back order;profit;Price and time dependent
