Optimal Replenishment Strategy for Inventory Mechanism with a Known Price Increase and Backordering in Finite Horizon

Table 5

Impact of parameter on the retailer’s ordering policy, .

								Optimal policy
2.00	−80.65	56333	56334	56241	56240	93	216.53
2.05	63.71	54490	54492	54520	54519	−29	—
2.10	38.71	54480	54482	54492	54492	−12	—
2.15	13.71	54476	54476	54465	54465	10	123.60 or 121.06
2.20	−11.29	54474	54475		54438	36	148.21
2.25	−36.29	54470	54472		54412	60	172.83
2.30	−61.29	54463	54464	54384		80	197.44
2.35	−86.29	54452	54453	54356	54356	96	224.73 or 222.06
2.40	58.06	52609	52611	52635	52635	−26	—
2.45	33.06	52600	52602	52608	52608	−8	—
2.50	8.06	52596	52597		52581	16	129.18
2.55	−16.94	52595	52596		52554	42	153.78
2.60	−41.94	52590	52592	52527		65	178.38
2.65	−66.94	52582	52584	52500		84	202.98
2.70	−91.94	52570	52572	52472		99	227.58
2.75	52.42	50728	50730	50751	50750	−22	—
2.80	27.42	50720	50722	50723	50723	−3	—
2.85	2.42	50717	50719	50696	50696	11	134.76 or 132.03
2.90	−22.58	50716	50717		50670	48	159.34
2.95	−47.58	50710	50712	50643		69	183.93
3.00	−72.58	50701	50703	50615		87	208.51

The underlined values indicate the ordering cost under the optimal ordering strategy.