id: 06091378
dt: j
an: 06091378
au: Zhang, Jihong; Ding, Xiaosong; Chen, Xi
ti: Pricing and inventory policy for an energy buy-back program.
so: J. Syst. Sci. Math. Sci. 31, No. 10, 1297-1305 (2011).
py: 2011
pu: Science Press, Beijing
la: ZH
cc: 
ut: energy buy-back; compensation; setup cost; dynamic programming
ci: 
li: 
ab: 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.
rv: