In this note we present an efficient exact algorithm to solve the joint pricing and inventory problem for which Bhattacharjee and Ramesh (2000) proposed two heuristics. The algorithm is based on a method proposed by Thomas (1970) and we show additional properties which can be used to arrive at an even more efficient algorithm. Furthermore, we point out several shortcomings in the paper by Bhattacharjee and Ramesh.

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Keywords Dynamic programming, Inventory, Pricing
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Journal European Journal of Operational Research
van den Heuvel, W, & Wagelmans, A.P.M. (2017). A note on "A multi-period profit maximizing model for retail supply chain management". European Journal of Operational Research, 260(2), 625–630. doi:10.1016/j.ejor.2017.01.014