Sharif University of Technology Scientia Iranica 1026-3098 Articles in Press 2024 04 21 Backordering policy for hi-tech products with price and demand uncertainty during the pandemics 23559 10.24200/sci.2024.61364.7268 EN C.P. Yu Department of Distribution Management, Takming University of Science and Technology, Taipei 114, Taiwan, ROC Y.D. Huang School of Digital Economics, Changzhou College of Information Technology, Science Education City, Changzhou, Jiangsu 213164, China J.M. Chen Institute of Industrial Management, National Central University, 300 Zhongda Road, Zhongli District, Taoyuan City, Taiwan, 32001, ROC Y.M. Yee Department of Industrial and Systems Engineering, Chung Yuan Christian University, Zhongli District, Taoyuan City, Taiwan, 320314, ROC Hui Ming Wee Industrial Engineering Department, Chung Yuan Christian University, Taoyuan city, Taiwan YH Liu Marketing and Logistics Management Department, St. John’s University, Tamsui, Taipei 25135, Taiwan, ROC Journal Article 2022 11 01 The decline phase of a high-tech product's life cycle often causes variations in production schedules due to over or under production. To address this challenge, we propose a production-inventory model that considers decreasing demand and prices during pandemics. Our model aims to optimize replenishment, dispatching, and backordering policies, ultimately maximizing total profit for high-tech industries. Our proposed solution procedure derives optimal policies, taking into account the unique demands during the pandemics. We suggest adopting either a last-in-first-out (LIFO) or first-in-first-out (FIFO) backordering policy depending on whether profit or fairness is the primary concern. We have provided a numerical example and conducted a sensitivity analysis to demonstrate the practical application of the proposed model. By optimizing the replenishment, our model enables high-tech industries to maximize total profit, even in the face of declining demand and prices during the pandemics. Overall, our model represents a valuable tool for high-tech industries seeking to better manage production and inventory, and we believe it has the potential to increase product profitability during the declining phase of a product's life cycle. https://scientiairanica.sharif.edu/article_23559_081fd273021e6dc394b0055fa41a52e9.pdf