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《Journal of Industrial Engineering and Engineering Management》 2009-04
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Joint Optimal Dynamic Pricing and Lot Sizing Problem with Backlogging

DAI Dao-ming~(1,2),YANG Shan-lin~2(1.School of Information Engineering,Anhui University of Finance & Economics, Bengbu 233041,China;2.School of Management,Hefei University of Technology,Hefei 230009,China)  
In this paper,we study coordination of pricing and lot sizing problem with backlogging in order to maximize the form's profit.An algorithm based on dynamic programming is proposed,by which the optimal pricing strategy and the optimal order strategy are solved in polynomial time.The results show that the algorithm can effectively solve the original problem.Also,in comparison with the decentralized policy,the rational prices can be set so as to maximize the form's profit by the joint policy.The results show the effect of setup cost on profit and ordering policy by sensitivity analysis of setup cost.The coordinative model with backlogging can mak the firm more profitable than the one without backlogging.
【Fund】: 国家自然科学基金重点资助项目(70631003);; 安徽省高校自然科学研究基金重点资助项目(KJ2009A138);; 中华全国供销合作总社科研基金资助项目(GXZS0819)
【CateGory Index】: F224;F274
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