Title: An order quantity scheme for ramp type demand and backlogging during stock out with discount strategy
Authors: Anand Chauhan; Shilpy Tayal
Addresses: Department of Mathematics, Graphic Era Deemed to be University, Dehradun, India ' Department of Mathematics, Graphic Era Hill University, Dehradun, India
Abstract: An offer of reduction in per unit purchasing cost which depends on purchasing quantity attracts and promotes the customers for bulk purchasing. But bulk purchasing of inventory also increase the distinct related costs such as deterioration and holding. In this model we have presented an inventory problem combining all these factors with ramp type demand and quantity discount under partial backlogging. The new launched electronic items and fashionable products follow a ramp-type function for demand. Initially the demand for such product rises with time, and it becomes constant after a certain time. Here, a mathematical model developed to analyse the suitable purchasing amount and to optimise the model. The model is demonstrated numerically, and a sensitivity analysis is also performed to validate the system.
Keywords: service delivery; unit time profit; optimal strategy; ramp type demand; quantity discount; deteriorating products; stock-out; partial backlogging.
International Journal of Services Operations and Informatics, 2021 Vol.11 No.1, pp.27 - 40
Received: 29 May 2020
Accepted: 28 Jul 2020
Published online: 08 Apr 2021 *