PRICING AND ORDERING POLICY FOR DETERIORATING INVENTORY SYSTEM WITH PRICE SENSITIVE RAMPTYPE DEMAND, PRE AND POST DETERIORATION DISCOUNTS

Abstract

A trend of offering discounts on selling price is very casual nowadays. It is consider as promotional tools to boost the demand. Retailer dealing with non-instantaneous deteriorating items offers different price discounts to his customers, before and after deterioration starts. In this article, a policy is presented for non-instantaneous deteriorating items with price sensitive ramp type demand pattern. Pre deterioration discount is considered to be smaller than the post deterioration discount as per trend. Mathematical formulation is supported with a numerical examples and sensitivity with respect to different parameters is discussed