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Original Articles

Optimal decision of price and stock level in consideration of the influence for demand

Pages 173-183 | Received 01 Nov 1997, Published online: 18 Jun 2013
 

Abstract

We consider an optimal decision model of price and stock level in consideration of the influence for demand. Detailed optimal policies are obtained in the cases of both a linear demand function and a constant price elasticity of demand. Furthermore the solving method is shown in the case of random demand.

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