Reference quality, as a benchmark against which the purchase quality of a product is judged, has an important impact on consumersâ??\npurchase decision, especially perishable items.Thus, howto determine an appropriate quality investment and ordering strategies for\nperishable items to maximize retailersâ?? profit is an essential task. A joint dynamic quality investment and inventory replenishment\nproblem for perishable items with consideration of reference quality effect is investigated, where the retailer sells its products using\na combination of the offline and online stores, and the sales function is sensitive to productsâ?? quality and consumersâ?? reference\nquality. The optimal control model is established to maximize the retailerâ??s total profit by making a joint quality and inventory\nstrategy.The continuous time dynamic optimal quality investment and inventory replenishment strategies with reference quality\neffect are obtained by Pontryaginâ??s maximum principle. Numerical experiments are accounted for the key system parameters on\nthe optimal strategies.
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