@article{(Open Science Index):https://publications.waset.org/pdf/8021, title = {A Multi-period Profit Maximization Policy for a Stochastic Demand Inventory System with Upward Substitution}, author = {Soma Roychowdhury}, country = {}, institution = {}, abstract = {This paper deals with a periodic-review substitutable inventory system for a finite and an infinite number of periods. Here an upward substitution structure, a substitution of a more costly item by a less costly one, is assumed, with two products. At the beginning of each period, a stochastic demand comes for the first item only, which is quality-wise better and hence costlier. Whenever an arriving demand finds zero inventory of this product, a fraction of unsatisfied customers goes for its substitutable second item. An optimal ordering policy has been derived for each period. The results are illustrated with numerical examples. A sensitivity analysis has been done to examine how sensitive the optimal solution and the maximum profit are to the values of the discount factor, when there is a large number of periods.}, journal = {International Journal of Mathematical and Computational Sciences}, volume = {3}, number = {9}, year = {2009}, pages = {762 - 770}, ee = {https://publications.waset.org/pdf/8021}, url = {https://publications.waset.org/vol/33}, bibsource = {https://publications.waset.org/}, issn = {eISSN: 1307-6892}, publisher = {World Academy of Science, Engineering and Technology}, index = {Open Science Index 33, 2009}, }