ISSN:2147-7841 English

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Abstract


A Literature Review and Classification on Inventory Models under the Assumption of Price Dependent Deterministic Demand
Inventory and pricing decisions directly influence the supply and demand processes. In recent years, many companies concentrate their effort on taking these decisions together and, therefore, minimizing the risk of potential gap between demand and supply. In this context, while demand process is influenced by price strategies, supply process is controlled by inventory policies. These decisions jointly serve the purpose of increase in business profitability. Therefore, companies need to make optimal inventory and pricing decision in order to attain maximum profit. This necessity gives birth to important mathematical models, developed by researches, for guiding companies while they develop their pricing and inventory policies. In this paper, we present a detailed review on studies which consider coordinated inventory and pricing decisions problem under price dependent deterministic demand assumption. In this context, we first introduce the modelling characteristics that are commonly used by researchers. Further, we classify the studies according to their modelling characteristics. We finally touch upon the gap between academic research and industrial practices, moreover we propose some future work suggestions to researchers.

Keywords
Coordinated Inventory and Pricing Management, Deterministic Demand


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