Abstract: For the inventory and pricing decision problems, a finite version of the joint dynamic inventory/pricing decision model in a continuous homogeneous deterministic inventory system is formulated and the relationship between the adjacent order periods under the optimal conditions is analyzed. Further, it is proved that the equal-interval-ordering policy is optimal and that the price in each period should be equal. Then, a method for computing the optimal inventory/pricing polices is obtained. Finally, some numerical analyses are made.

Key words: dynamic inventory/pricing policy, homogeneous inventory system, deterministic demand