Optimal Inventory Policies For Multi-class Demand Fulfillment With One-step Upgrading

On the basis of summarizing and reviewing the existing researches,this paper extends the existing research to the inventory policy satisfy multi-class with the onestep upgrading.Considering the difference of customer purchase behavior of service strategy based on one-step substitution in multi-class environment the enterprisers how to control inventory and order quantity,develop service strategy to maximize profit.Innovation of this paper is: ?Analysis enterprises how to control inventory with onestep upgrading to meet customer needs.The conclusion of the study shows that according to the purchasing behavior of customers,the implementation of inventory control and integrated service strategy can improve the profits and customer service rate;?We consider the situation when customer that cannot get instant service.The retailer provides a reasonable discount for the customer who is denied instant service to offset the cost of waiting and encourages them to stay and wait to be satisfied when next order coming.In a stochastic multi-class environment,the arrival of a demand following a Poisson process.Construct a dynamic programming model with one-step upgrading.Using dynamic programming,mathematical induction and other optimization methods to put forward the optimal ordering strategy,optimal dynamic discount and inventory control points.Compared with the model not considering discount,this model increasing demand fulfillment,the credibility of enterprises and increase the profit significantly.