Research on Inventory Model of Non-instantaneous Deteriorating Items under Shortage Conditions

This paper studies the inventory control and pricing strategies of non-instantaneous deteriorating items in an order period under shortage conditions for retailers with online sales channels and store sales channels. A new inventory model is established with the goal of maximizing the average profit of retailers in the period, and an effective algorithm for solving the optimal price is designed based on the iterative method. Finally, the optimal solution of the retailer's average profit function is obtained by MATLAB simulation in numerical examples, namely, the optimal sales price, the optimal stock-out point and the optimal order period. The sensitivity of the main parameters such as initial inventory and sales price is analyzed, and the corresponding inventory management strategy is summarized.