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A joint pricing and inventory control problem under an energy buy-back program
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences.
2012 (English)In: Operations Research Letters, ISSN 0167-6377, E-ISSN 1872-7468, Vol. 40, no 6, 516-520 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2012. Vol. 40, no 6, 516-520 p.
Keyword [en]
Energy buy-back, Dynamic programming, Pricing and inventory
National Category
Information Systems
Research subject
Computer and Systems Sciences
Identifiers
URN: urn:nbn:se:su:diva-84850DOI: 10.1016/j.orl.2012.06.010OAI: oai:DiVA.org:su-84850DiVA: diva2:581608
Available from: 2013-01-02 Created: 2013-01-02 Last updated: 2017-12-06Bibliographically approved

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