Title: Inventory model with quantity discount, pricing and partial backlogging for a deteriorating items
Authors: R.P. Tripathi; Dinesh Singh; Devendra Singh; Pushpa Rao
Addresses: Department of Mathematics, Graphic Era University, Dehradun (UK), India ' Department of Mathematics, SGRRPG College, Dehradun (UK), India ' Department of Mathematics, SGRRPG College, Dehradun (UK), India ' Indraprastha Engineering College, Sahibabad (UP), India
Abstract: Some products like fruits, vegetables, pharmaceuticals, volatile liquids, etc., deteriorate continuously due to evaporation, spoilage, obsolescence, etc. The objective of this study is to establish a deterministic inventory model with quantity discount, pricing and partial backordering when the product in stock deteriorates over time. Large number of retailers makes pricing decision of their products at certain times and these decisions affect demand. The demand rate is considered to be exponential price dependent. In this proposed model deterioration rate is taken as linear time dependent. Mathematical model is established to find optimal price, cycle and total profit. The second order approximation is used to obtain closed form optimal solution. Numerical examples are provided to illustrate the proposed model. Sensitivity analysis is established with the variation of several parameters.
Keywords: inventory; shortage; pricing; partially backlogged; deterioration.
International Journal of Operational Research, 2019 Vol.35 No.2, pp.208 - 223
Received: 20 Nov 2015
Accepted: 25 Jun 2016
Published online: 05 Jul 2019 *