Article presents the idea, that if the demand on a product can be described with high-elasticity of price, decrease in price can determine an increase in total revenue, but not necessary – in total margin (profitability). From one side the overstated prices on the product will decrease the intensity of its sales, from another side – will decrease the return on working capital, which is used for wholesale purchasing. Also it will increase risks of expiration period exceeding in retail network. Article considers questions of rational price setting and increase in efficiency of working capital employment for trade company.
The article is devoted to the application of mathematical programming to solve the problem of supplier selection and inventory lot-sizing optimization under the changing demand. In this paper, we propose the model of the stochastic multi item problem and lot-sizing optimization under changing demand, which unlike the current setting of this problem provides an optimal solution to the considerable demand uncertainty.