This paper presents a robust policy for optimal pricing and inventory control for perishable assets. The problem is ˉrst identiˉed analogous to newsvendor problem with pricing and later, an integrated pricing and inventory control policy is developed using the distribution free approach for a single commodity with a single planing period assuming no salvage value at the end of the planning period. The distribution free approach assumes that the demand distribution is unknown and therefore approximates the stochastic price dependent demand into deterministic price dependent demand while knowing the simple parameters, mean and standard error of the stochastic price dependent demand. Thus, the approach establishes a good estimate on the revenue under worst possible demand situation by developing a lower bound on the revenue. The lower bound is shown quasi-concave and thus, result in a global optimal control of the price and inventory decisions jointly such that the lower bound estimate on the revenue is maximized. Numerical experiments demonstrate that the distribution free estimate on the revenue are near optimal.
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