scholarly journals Optimal Pricing and Ordering Policy for Deteriorating Items with Stock-and-Price Dependent Demand and Presale Rebate

2016 ◽  
Vol 2016 ◽  
pp. 1-7
Author(s):  
Lianxia Zhao ◽  
Jianxin You
Keyword(s):  
Sensitivity Analysis ◽  
Deteriorating Items ◽  
Time Dependent ◽  
Optimal Pricing ◽  
Selling Price ◽  
Effective Algorithm ◽  
Numerical Examples ◽  
Ordering Policy ◽  
Demand Rate ◽  
Dependent Demand

This paper considers an EOQ inventory model with presale policy for deteriorating items, in which the demand rate depends on both on-hand inventory and selling price. Under the assumption that all the presale orders are fully backlogged with waiting-time dependent rebate, this study develops several propositions and derives optimal pricing and ordering policy by designing an effective algorithm. Two numerical examples are also given to illustrate the effectiveness of the algorithm. Finally, the sensitivity analysis of the main parameters is provided.

Pricing and Replenishment Policies for Imperfect Quality Deteriorating Items under Inflation and Permissible Delay in Payments

2012 ◽  
pp. 170-185
Author(s):  
Chandra K. Jaggi ◽  
Satish K. Goel ◽  
Mandeep Mittal
Keyword(s):  
Planning Horizon ◽  
Deteriorating Items ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Discounted Cash Flow ◽  
Permissible Delay In Payments ◽  
Ordering Policy ◽  
Demand Rate ◽  
Delay In Payments ◽  
Almost All

Usually it is assumed that all items in a lot are of good quality, but in reality this assumption may not always be pertinent. Thus, the inspection of lots becomes essential in almost all organizations. Moreover, its role becomes more vital when the items are deteriorating in nature. Owing to this fact, this paper investigates the impact of initial inspection on retailer’s pricing and ordering policy for deteriorating items under inflation and permissible delay in payments using discounted cash flow approach over a finite planning horizon. Demand rate is assumed to be a function of selling price. The proposed model jointly optimizes the number of replenishments and price by maximizing the retailer’s total profit. Results have been demonstrated with the help of a numerical example, and sensitivity analyses are also presented to provide managerial insights into practice.

EOQ model for deteriorating items having constant and time-dependent demand rate

OPSEARCH ◽  
2007 ◽  
Vol 44 (3) ◽  
pp. 251-260 ◽  
Author(s):  
Meenakshi Srivastava ◽  
Ranjana Gupta
Keyword(s):  
Deteriorating Items ◽  
Time Dependent ◽  
Eoq Model ◽  
Demand Rate ◽  
Dependent Demand Rate ◽  
Dependent Demand

scholarly journals Retailer's Optimal Pricing and Ordering Policies for Non-Instantaneous Deteriorating Items with Price-Dependent Demand and Partial Backlogging

2009 ◽  
Vol 2009 ◽  
pp. 1-18 ◽  
Author(s):  
Chih-Te Yang ◽  
Liang-Yuh Ouyang ◽  
Hsing-Han Wu
Keyword(s):  
Optimal Solution ◽  
Deteriorating Items ◽  
Optimal Pricing ◽  
Selling Price ◽  
Major Objective ◽  
Maximum Value ◽  
Total Profit ◽  
Replenishment Cycle ◽  
Theoretical Results ◽  
Dependent Demand

An inventory system for non-instantaneous deteriorating items with price-dependent demand is formulated and solved. A model is developed in which shortages are allowed and partially backlogged, where the backlogging rate is variable and dependent on the waiting time for the next replenishment. The major objective is to determine the optimal selling price, the length of time in which there is no inventory shortage, and the replenishment cycle time simultaneously such that the total profit per unit time has a maximum value. An algorithm is developed to find the optimal solution, and numerical examples are provided to illustrate the theoretical results. A sensitivity analysis of the optimal solution with respect to major parameters is also carried out.

scholarly journals Inventory models with stock- and price-dependent demand for deteriorating items based on limited shelf space

2010 ◽  
Vol 20 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Chun-Tao Chang ◽  
Yi-Ju Chen ◽  
Tzong-Ru Tsai ◽  
Wu Shuo-Jye
Keyword(s):  
Optimal Solution ◽  
Deteriorating Items ◽  
Selling Price ◽  
Order Quantity ◽  
Shelf Space ◽  
Stock Level ◽  
Eoq Model ◽  
Eoq Models ◽  
Demand Rate ◽  
Dependent Demand

This paper deals with the problem of determining the optimal selling price and order quantity simultaneously under EOQ model for deteriorating items. It is assumed that the demand rate depends not only on the on-display stock level but also the selling price per unit, as well as the amount of shelf/display space is limited. We formulate two types of mathematical models to manifest the extended EOQ models for maximizing profits and derive the algorithms to find the optimal solution. Numerical examples are presented to illustrate the models developed and sensitivity analysis is reported.

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