On the Optimality of the Multi-Product EOQ Model with Pricing Consideration
On the Optimality of the Multi-Product EOQ Model with Pricing Consideration
- 주제(키워드) Pricing , Inventory Model
- 발행기관 한국경영과학회
- 발행년도 2012
- 총서유형 Journal
- UCI G704-000073.2012.18.1.005
- KCI ID ART001663737
- 본문언어 영어
초록/요약
Two previous studies that attempted to generalize the deterministic joint pricing-inventory decision model are re-evaluated. We prove analytically that even in a single-product environment, the EOQ model with constant price-elastic demand cannot find optimal solutions unless two optimality conditions associated with price elasticity and demand magnitude are satisfied. Due to the inexistence of the general optimality for the problem, demand function and price elasticity must be evaluated and bounded properly to use the methods proposed in the previous studies.
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