THE FINITE HORIZON TRENDED CONTINUOUS INVENTORY REPLENISHMENT AND PRICING PROBLEMS FOR DETERIORATING ITEMS WITH STOCK AND PRICE SENSITIVE DEMAND

Authors

  • P. K. Tripathy Utkal University, Bhubaneswar, India
  • M. Pattnaik Utkal University, Bhubaneswar, India
  • P. Tripathy Utkal University, Bhubaneswar, India

Keywords:

Pricing, Ordering, Stock dependent demand, Continuous model, Deterioration

Abstract

In this paper, an inventory model for deteriorating items with price and stock dependent demand rate over a finite planning
horizon is reconciled. In contrast to the traditional deterministic inventory model with static price over the entire planning
horizon or fixed number of price changes over the finite time horizon, an alternative continuous model is derived in which prices
selling and setting are to be the decision variables. It is shown that the total profit function is concave. With the concavity, a
solution procedure is presented to determine the optimal order replenishment, optimal price selling and setting strategy and
optimal profit for deteriorated seasonal items. Numerical examples and sensitivity analyses are given to validate the results of
the inventory model. The analysis shows the influence of key model parameters

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Published

2023-06-03

How to Cite

Tripathy, P. K., Pattnaik, M., & Tripathy, P. (2023). THE FINITE HORIZON TRENDED CONTINUOUS INVENTORY REPLENISHMENT AND PRICING PROBLEMS FOR DETERIORATING ITEMS WITH STOCK AND PRICE SENSITIVE DEMAND. Investigación Operacional, 33(1). Retrieved from https://revistas.uh.cu/invoperacional/article/view/5286