Optimal pricing and lot-sizing under conditions of perishability, finite production and partial backordering and lost sale

Perishable products constitute a sizable component of inventories. Common questions in a production and selling situation involving a perishable (or a non-perishable) product are: What should be the price and what should be the size of the replenishment? When demand for the product is price sensitive, pricing and lot sizing decisions are interdependent. Similarly, when a product is highly perishable, the demand may need to be backlogged to …