A Model Of Pricing-inventory Policy For Deteriorating Items

In 21st century, with the rapid development of the information technology, the taking shape gradually of globalization market, enterprises face competing for the resource and market in the world, the old management mode can't already meet such new need. Under the background of economy globalization, market competition is more vehement, the competition between enterprises has turn into competition between supply chains. The Supply chain management(SCM) arises rapidly and gradually turn into the new direction of enterprise management under this kind of background. With the development of supply chain management, the traditional inventory control theory faces the challenge. There is a great gap between supply chain inventory and traditional inventory theory. Inventory management is one of the oldest topics. However, its old doesn't mean an ignorance by entrepreneurs an scholars. Instead, with the school of management science and widely application of computer, especially the appearance of supply chain management, this ancient field has always been the frontier in production management researches. The forming of many new systems and new concepts are based on the thorough studies and thoughts on the basic concept of inventory. Now, inventory management is a very important part of supply chain management (SCM).Base on both domestic and foreign analysis of the history, current situation and future develop of inventory of deteriorating items, the thesis gives a study on inventory and pricing policy for deteriorating items.In the second part of this article, through using a new concept-quality condition to describe the deterioration characteristic of a kind of deteriorating items which have the fixed life cycle and its quality overall deteriorate. Under the assumption of constant rate of demand, shortages-backlogging partial with buyer, inventory model of supplier and buyer is developed, and develops the integrated supplier-buyer strategy model at cost minimization . A numerical example are presented to illustrate integrated strategy is better than either the supplier or buyer decide independently.Under the assumption of price-dependent demand rate, the wholesale price-dependent selling price, and without shortage, it studies the product-pricing-inventory model of the supplier and buyer, and develops the integrated strategy of supplier and buyer. A numerical example is present to illustrate the superiority of cooperative police, and the total cost of supply chain is declined. Through supplier sharing the saves with the buyer, the cooperation between supplier and buyer can be realized.