OPTIMAL REPLENISHMENT POLICY OF RAMP TYPE INVENTORY MODEL UNDER DISCOUNTED PRICE AND IMPRECISION

Abstract

Demand plays a crucial role in supply chain system. Proper knowledge on behaviour of demand improves the effectiveness of the
decision making process in supply chain system. Demand of some products may not always be linear or quadratic or exponential
but ramp type. For newly launched fashionable goods, garments, automobiles, etc. demand rises initially but it becomes stagnant
after a certain period of time. Ramp type function rigorously depicts such type of demand pattern. Moreover, price discount which
is a way of alluring the customers in the market has become a strategy for promoting the business. Further, it becomes difficult to
assess the parameters involved in supply chain due to its increasing complexity. That is why it is essential to effectively deal with
such type of uncertainty which occurs in business process. The present study endeavours to develop a ramp type inventory model
under imprecision and price discount where deterioration follows weibull distribution. The model is exemplified through numerical
illustration. Sensitivity analysis is conducted to discern the effect of various system parameters on optimality. The outcomes of
the paper provide inspiring and instrumental insights about the uncertainty vis-à-vis price discount.