Joint Price and Reorder Point Determination for Profit Maximization

  1. Manuel Cardós Carboneras 1
  2. Fuente Aragón, María Victoria de la 2
  3. Lorenzo Ros-McDonnell 2
  1. 1 Universidad Politécnica de Valencia
    info

    Universidad Politécnica de Valencia

    Valencia, España

    ROR https://ror.org/01460j859

  2. 2 Universidad Politécnica de Cartagena
    info

    Universidad Politécnica de Cartagena

    Cartagena, España

    ROR https://ror.org/02k5kx966

Liburua:
Advances in engineering networks: proceedings of the 12th International Conference on Industrial Engineering and Industrial Management
  1. Castro, Rodolfo de (ed. lit.)
  2. Gerusa Giménez (ed. lit.)

Argitaletxea: Springer Suiza

ISBN: 978-3-030-44529-4 978-3-030-44530-0

Argitalpen urtea: 2020

Orrialdeak: 207-216

Biltzarra: International Conference on Industrial Engineering and Industrial Management (12. 2018. Girona)

Mota: Biltzar ekarpena

Laburpena

This paper proposes a novel, exact procedure for the joint determination of the reorder point and the price, given that demand is a power function of price and the objective is profit maximization. Some examples illustrate the effect of elasticity on the existence of a profit optimum; in fact just elastic demand items present such optima. The procedure presented in this paper overcomes others in the literature because an exact profit function is used instead of an approximate one.