Pricing and inventory control policy for non-instantaneous deteriorating items with time- and price-dependent demand and partial backlogging

Farughi, H.; Khanlarzade, N.; Yegane, B.

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Decision Science Letters

ISSN 1929-5812 (Online) - ISSN 1929-5804 (Print) Quarterly Publication Volume 3 Issue 3 pp. 325-334 , 2014

Pricing and inventory control policy for non-instantaneous deteriorating items with time- and price-dependent demand and partial backlogging Pages 325-334 Download PDF

Authors: Hiwa Farughi, Narges Khanlarzade, Babak Yousefi Yegane

Keywords: Inventory control, Partial backlogging, Perishable items, Pricing

Abstract: Determining the optimal inventory control and selling price for deteriorating items is of great significance. In this paper, a joint pricing and inventory control model for deteriorating items with price- and time-dependent demand rate and time-dependent deteriorating rate with partial backlogging is considered. The objective is to determine the optimal price, the replenishment time, and economic order quantity such that the total profit per unit time is maximized. After modeling the problem, an algorithm is proposed to solve the resulted problem. We also prove that the problem statement is concave function and the optimal solution is indeed global.

How to cite this paper

 Farughi, H., Khanlarzade, N & Yegane, B. (2014). Pricing and inventory control policy for non-instantaneous deteriorating items with time- and price-dependent demand and partial backlogging.Decision Science Letters , 3(3), 325-334.

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