Resumen de Joint Price and Reorder Point Determination for Profit Maximization
Manuel Cardós Carboneras, María Victoria de la Fuente Aragón, Lorenzo Ros McDonnell
This paper proposes a novel, exact procedure for the joint determination of the reorder point and the price, given that demand is a power function of price and the objective is profit maximization. Some examples illustrate the effect of elasticity on the existence of a profit optimum; in fact just elastic demand items present such optima. The procedure presented in this paper overcomes others in the literature because an exact profit function is used instead of an approximate one.
