Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Joint pricing and inventory control for a stochastic inventory system
  with Brownian motion demand   In this paper, we consider an infinite horizon, continuous-review, stochastic
inventory system in which cumulative customers' demand is price-dependent and
is modeled as a Brownian motion. Excess demand is backlogged. The revenue is
earned by selling products and the costs are incurred by holding/shortage and
ordering, the latter consists of a fixed cost and a proportional cost. Our
objective is to simultaneously determine a pricing strategy and an inventory
control strategy to maximize the expected long-run average profit.
Specifically, the pricing strategy provides the price $p_t$ for any time
$t\geq0$ and the inventory control strategy characterizes when and how much we
need to order. We show that an $(s^*,S^*,p^*)$ policy is optimal and obtain the
equations of optimal policy parameters, where $p^*=\{p_t^*:t\geq 0\}$.
Furthermore, we find that at each time $t$, the optimal price $p_t^*$ depends
on the current inventory level $z$, and it is increasing in $[s^*,z^*]$ and is
decreasing in $[z^*,\infty)$, where $z^*$ is a negative level.

5
The categories of this paper are: gr-qc
18
The categories of this paper are: econ
23
The categories of this paper are: solv-int
19
The categories of this paper are: eess
29
The categories of this paper are: funct-an
15
The categories of this paper are: nucl-ex
14
The categories of this paper are: math-ph
37
The categories of this paper are: supr-con
24
The categories of this paper are: dg-ga
20
The categories of this paper are: acc-phys
21
The categories of this paper are: adap-org
11
The categories of this paper are: hep-lat
25
The categories of this paper are: patt-sol
35
The categories of this paper are: mtrl-th
8
The categories of this paper are: hep-ex
10
The categories of this paper are: q-bio