Optimum Inventory Level and optimal Selling Price to Realize a Pre-determined Level of Profit

In this paper, the one period multi-item inventory model is considered in which it is required to determine the production quantity and selling price of each item which maximize the probability of realizing predetermined level of profit. The objective function of this model is the sum of weighted probabilities which represent the possibility of obtaining the predetermined level of profit for each item. Budget constraint, inventory site constraint and constraints of price are considered. Finally this paper shows a numerical example in which random demand of each item has exponential distribution.