An EOQ model for perishable item with stock and price dependent demand rate
by Sudhansu Khanra, Shib Sankar Sana, Kripasindhu Chaudhuri
International Journal of Mathematics in Operational Research (IJMOR), Vol. 2, No. 3, 2010

Abstract: This paper deals with a single-item economic order quantity model where the vendor is in a position to influence demand of customers by its stock display and pricing decision. In general, most of the merchandise have a certain life time after which deterioration starts. In this situation, a good management decides to boost the sales of their products at reduced price to avoid more losses due to deterioration. Consequently, the demand of deteriorating items is an increasing function of reduction rate on selling price. It is thus confronted with simultaneous reduction on selling price and replenishment quantity decisions, which would jointly maximise the expected average profit over an infinite planning horizon. Computational aspects of the proposed model are discussed, and formulation is shown to give successful results on test problems. The sensitivity of the optimal solution to changes in the values of different parameters is also examined.

Online publication date: Sat, 17-Apr-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Mathematics in Operational Research (IJMOR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com