An inventory model for product of short cycle based on discount price and advance sales

This paper study inventory problem for perishable items of product of short life cycle under conditions that the supplier offers to discount price the retailer and the retailer adopt advance sales policies, in which demand is interrelated with price and time and deteriorating rate is a constant. Inventory model for optimization of price is developed in the article and the purpose of the present paper is to maximize total profit. Existence of optimal solution for the proposed model is analyzed, and then steps of solving and numerical experiment are presented.