Title: The effect of stock, price and advertising on demand – an EOQ model

Authors: Shib Sankar Sana, Bikas Kanti Sarkar, Kripasindhu Chaudhuri, Debabrata Purohit

Addresses: Department of Mathematics, Bhangar Mahavidyalaya, University of Calcutta, Bhangar-743502, 24PGS(South), West Bengal, India. ' Department of Computer Science and Engineering, Birla Institute of Technology (Deemed University), Mesra, Ranchi, India. ' Department of Mathematics, Jadavpur University, Kolkata-32, India. ' Department of Mathematics, Sikkim Government College, Gangtok, India

Abstract: The model deals with an economic order quantity (EOQ) or economic production quantity (EPQ) model where the effect of |advertising|, |sales price| and |stock-display| is investigated. It is developed both for deteriorating and ameliorating items in the light of capacity constraint for storage facility and the limitation of the budget for advertising. The associated average profit function is maximised by calculus method. It is also illustrated by some numerical data for the test problem.

Keywords: selling price; inventory; advertising; stock display; EOQ modelling; economic order quantity; economic production quantity; EPQ; capacity constraints; storage facilities; budget limits; average profit function.

DOI: 10.1504/IJMIC.2009.023533

International Journal of Modelling, Identification and Control, 2009 Vol.6 No.1, pp.81 - 88

Available online: 26 Feb 2009

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