Study on The Optimal Order Quantity of single-period products Returned for Continuous Demand

摘要

In this paper, we consider the inventory control problem of single-period product items with a fixed life cycle and short marketing period. Our study expands the classical newsboy problem to consider defective items and returning policy. The single-period model is established, and the optimal order quantity is derived for cases when the expect profit model in the supplier and the retailer operate independently as well as collaboratively. Then numerical examples and sensitivity analysis are carried out to illustrate the application of the model. Research results show that the profit of them under collaboration is bigger than independence respectively.