A joint pricing and inventory control problem under an energy buy-back program

• The demand for power keeps rising with rapid economic development and growth of industrialization. The frequent mismatch created between demand and supply can be mitigated by the use of energy buyback programs. This paper models a buy-back program using a periodic review joint pricing and inventory model, incorporating compensations and setup cost over finite planning horizons. It is shown that an (s, S, A, P∗) policy is optimal for the decision maker for maximizing the expected total profit.

Subject headings

NATURVETENSKAP  -- Data- och informationsvetenskap -- Systemvetenskap, informationssystem och informatik (hsv//swe)

NATURAL SCIENCES  -- Computer and Information Sciences -- Information Systems (hsv//eng)

Keyword

Energy buy-back

Dynamic programming

Pricing and inventory

data- och systemvetenskap

Computer and Systems Sciences

Publication and Content Type

ref (subject category)

art (subject category)