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

Table 6

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

(%)								Optimal policy
1	4.04	52506	52505	52555	52554	−49	—
2	4.08	53003	53002	53049	53049	−47	—
3	4.12	53501	53499	53543	53542	−43	—
4	4.16	53996	53998	54035	53034	−38	—
5	4.20	54493	54494	54525	54525	−32	—
6	4.24	54990	54991	55015	55014	−24	—
7	4.28	55487	55488	55503	55502	−15	—
8	4.32	55983	55984	55989	55989	−6	—
9	4.36	56480	56482	56475	56474	6	117.24
10	4.4	56977	56977	56958	56958	18	132.40 or 129.82
11	4.44	57473	57474	57441	57441	32	144.98 or 142.39
12	4.48	57970	57970	57922	57922	48	157.55 or 154.96
13	4.52	58466	58466	58402	58402	64	170.12 or 167.53
14	4.56	58963	58963	58881	58881	82	182.69 or 180.09
15	4.60	59459	59459	59358	59358	101	195.25 or 192.65
16	4.64	59995	59995	59834	59834	121	207.81 or 205.21
17	4.68	60451	60451	60308	60309	143	220.36
18	4.72	60948	60947	60782	60782	165	232.91 or 230.30
19	4.76	61444	61443	61254	61254	189	245.452 or 242.85
20	4.80	61940	61939	61724	61725	215	258.99

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