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<p>This novel framework investigates the optimal replenishment quantity for retailers by considering factors such as suboptimal quality items, imperfect inspection process, promotional and pricing strategies, and sustainable inventory management. A three-tier supply chain comprising suppliers, retailers, and customers is explored to study the interplay of price-dependent demand and investment in advertising in the context of inventory management. The methodology uses an analytical approach to optimise the expected total profit per unit time. To ensure continuous service and avoid shortages, a higher rate of inspection than demand is ensured during the inspection period. The study demonstrates the feasibility of the proposed model and examines the impact of critical parameters on the optimal replenishment policy through a numerical example and a comprehensive sensitivity analysis. The research makes a significant contribution to the field of inventory management by introducing a distinct model that accounts for the dynamic coupling between price and order quantity in decision-making. It integrates eco-friendly measures into the supply chain, which can contribute to long-term sustainability by tracking carbon emissions across various transit phases.</p>

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Integrating misclassification errors and emission externalities into dynamic pricing and promotional strategy models in retail

  • 期刊论文

  • 发表日期：

    2026年6月19日

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  • Aakanksha Kishore,
  • Rini,
  • Maroof Ahmad Mir

摘要

This novel framework investigates the optimal replenishment quantity for retailers by considering factors such as suboptimal quality items, imperfect inspection process, promotional and pricing strategies, and sustainable inventory management. A three-tier supply chain comprising suppliers, retailers, and customers is explored to study the interplay of price-dependent demand and investment in advertising in the context of inventory management. The methodology uses an analytical approach to optimise the expected total profit per unit time. To ensure continuous service and avoid shortages, a higher rate of inspection than demand is ensured during the inspection period. The study demonstrates the feasibility of the proposed model and examines the impact of critical parameters on the optimal replenishment policy through a numerical example and a comprehensive sensitivity analysis. The research makes a significant contribution to the field of inventory management by introducing a distinct model that accounts for the dynamic coupling between price and order quantity in decision-making. It integrates eco-friendly measures into the supply chain, which can contribute to long-term sustainability by tracking carbon emissions across various transit phases.