@article {IOPORT.06091378, author = {Zhang, Jihong and Ding, Xiaosong and Chen, Xi}, title = {Pricing and inventory policy for an energy buy-back program.}, year = {2011}, journal = {Journal of Systems Science and Mathematical Sciences}, volume = {31}, number = {10}, issn = {1000-0577}, pages = {1297-1305}, publisher = {Science Press, Beijing}, abstract = {Summary: The power demand keeps rising with the rapid development of economics and enhancement of industrialization. The contradiction between supply and demand provides energy buy-back programs with great opportunities. This paper considers a periodic review joint pricing and inventory model under an energy buy-back program by incorporating the compensation as well as setup cost over finite T planning horizons. At the beginning of each period, a decision maker has to figure out a joint pricing and inventory strategy under an energy buy-back program in order to maximize the expected total profit. It is shown that an $ (s, S, P^*)$ policy is optimal with the concept of $k$-convexity when the demand function is additive.}, identifier = {06091378}, }