We consider a dynamic inventory (production) model with general convex order (production) costs and excess demand that can be accepted or refused by the firm. Excess demand that is accepted is backlogged and results in a backlog cost whereas demand that is refused results in a lost sales charge....

We propose a dynamic programming framework for retailers of frequently purchased consumer goods in which the prices affect both the profit per visit in the current period and the number of visitors (i.e., store traffic) in future periods. We show that optimal category prices in the...