Title: Establishment of trader's optimal pricing strategy for fresh product and used product with stock and trade cost associated demand

Authors: R.P. Tripathi

Addresses: Department of Applied Sciences and Humanities, KNIT, Sultanpur, UP, 228118, India Affiliated to: Dr. A.P.J. Abdul Kalam Technical University, India

Abstract: The recovery of used commodities is a major problem for inventory managers due to the limited resources available in the universe. In this paper, it is considered that a retailer sells the new commodity to a purchaser and receives money. The buyer uses the product and resells the used items as mango is used by living things such as men, birds, animals, etc. After using it, the remainder will be again used for oil, medicine, fertilisers, seeds and others. Demand is assumed to be stock-sensitive for new products and price-linked for used items. We formulate a mathematical method for finding the total yearly profit. The optimal solution is obtained by differential calculus. A numerical example and sensitivity study are provided to authenticate the validity of the planned model. The executive phenomenon is also discussed.

Keywords: inventory; variable demand; recent and used items; revenue; profit; optimality.

DOI: 10.1504/IJCSM.2022.128188

International Journal of Computing Science and Mathematics, 2022 Vol.16 No.3, pp.265 - 279

Received: 24 Jul 2020
Accepted: 08 Sep 2020
Published online: 11 Jan 2023 *

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