AN EOQ INVENTORY MODEL FOR NON- INSTANTANEOUS DETERIORATING PRODUCTS WITH ADVERTISEMENT AND PRICE SENSITIVE DEMAND UNDER ORDER QUANTITY DEPENDENT TRADE CREDIT

Abstract

This research work discusses an inventory model in which a supplier provides to the retailer different credit periods associated with the order quantity. In the inventory model, it is considered that the product’s deterioration rate is non-instantaneous in nature. Additionally, an advertisement and price sensitive demand is modelled; this kind of demand is appropriate for the products for which the demand is influenced by the advertising and price. The main aim of this research works is to determine the optimal ordering policy which maximizes the retailer’s profit. In order to illustrate the proposed inventory model, some numerical examples are solved and a sensitivity analysis is presented.