Optimal Price-Inventory Strategy for Brewing Products -A Case Study of Wine Tourism in Taiwan

To the best of our knowledge, liquor is a kind of brewing products such as red wine, white wine, kaoliang liquor, whiskey, and so on. Usually, the value of these products depend on brewing run time. Although, the longer brewing run time can increase value and sales, manufacturer is going to pay more inventory and preservation costs. Therefore, the production run time and brewing run time will become important decision variables in the production system. This paper focuses on linking inventory theory and practice of wine tourism in Taiwan. As a result, we develop an extendible Economic Production Quantity (EPQ) model for brewing products and discuss the optimal decisions for maximizing the total profit.