A Study on the Deterministic Inventory Decision Models with the Net Present Value of Costs and Benefits

The net present value is an economic factor which is necessary considered during the decision processes.This paper formulates a continuous time deterministic inventory/pricing model with net present value of the costs and benefits for finite horizon.With a given price,a relationship between two adjacent order periods under the optimal policy is obtained and analyzed,and the bounds of the period length are obtained.Based on it,an algorithm for solving the optimal inventory and pricing policy is presented.Finally,some numerical examples are given to illustrate the models and results in this paper.