A two period lot sizing and pricing model for a perishable/seasonal item

In this study, we develop a two-period model for determining the lot size, period-one price and the rule for setting period-two price. The proposed model is applicable to lot sizing and pricing of a perishable or seasonal good when demand for the good is uncertain. In case of a perishable good, the retailer is assumed to follow a fixed replenishment interval which is assumed to be shorter than the fixed lifespan of the product. The interval in …