Inventory models with stock- and price-dependent demand for deteriorating items based on limited shelf space
DOI:
https://doi.org/10.2298/YJOR1001055CKeywords:
inventory control, pricing, stock-dependent demand, deteriorationAbstract
This paper deals with the problem of determining the optimal selling price and order quantity simultaneously under EOQ model for deteriorating items. It is assumed that the demand rate depends not only on the on-display stock level but also the selling price per unit, as well as the amount of shelf/display space is limited. We formulate two types of mathematical models to manifest the extended EOQ models for maximizing profits and derive the algorithms to find the optimal solution. Numerical examples are presented to illustrate the models developed and sensitivity analysis is reported.References
Baker, R.C., Urban, T.L. (1988) A deterministic inventory system with an inventory-level-dependent demand rate. Journal of the Operational Research Society, 39(9): 823
Bar-Lev, S.K., Parlar, M., Perry, D. (1994) On the EOQ model with inventory-level-dependent demand rate and random yield. Operations Research Letters, 16(3): 167
Chang, C.T. (2004) Inventory models with stock-dependent demand and nonlinear holding costs for deteriorating items. Asia-Pacific Journal of Operational Research, 21(4): 435
Datta, T.K., Pal, A.K. (1990) A note on an inventory model with inventory-level dependent demand rate. Journal of Operational Research Society, 41, 10, 971-975
Datta, T.K., Paul, K. (2001) An inventory system with stock-dependent, price-sensitive demand rate. Production Planning & Control, 12(1): 13
Gerchak, Y., Wang, Y. (1994) Periodic-review inventory models with inventory-level-dependent demand. Naval Research Logistics, 41(1): 99
Giri, B., Pal, S., Goswami, A., Chaudhuri, K.S. (1996) An inventory model for deteriorating items with stock dependent demand rate. European Journal of Operational Research, Vol. 95, 604-610
Giri, B.C., Chaudhuri, K.S. (1998) Deterministic models for perishable inventory with stock dependent demand rate and nonlinear holding cost. European Journal of Operational Research, Vol. 105, str. 467-474
Hwang, H., Hahn, K.H. (2000) An optimal procurement policy for items with an inventory level-dependent demand rate and fixed lifetime. European Journal of Operational Research, 127(3): 537
Kar, S., Bhunia, A.K., Maiti, M. (2001) Inventory of multi-deteriorating items sold from two shops under single management with constraints on space and investment. Comput. Oper. Res., 28(12): 1203
Levin, R.I., Mclaughlin, C.P., Lamone, R.P., Kottas, J.F. (1972) Production/operations management: Contemporary policy for managing operating systems. New York: McGraw-Hill
Padmanabhan, G., Vrat, P. (1990) Analysis of multi-item inventory systems under resource constraints: A non-linear goal programming approach. Engineering Costs and Production Economics, 20(2): 121
Padmanabhan, G., Vrat, P. (1995) EOQ models for perishable items under stock dependent selling rate. European Journal of Operational Research, Vol. 86, 281-292
Pal, M., Goswami, A., Chaudhuri, K.S. (1993) A deterministic inventory model for deteriorating items with stock dependent demand rate. International Journal of Production Economics, Vol. 32, 291-299
Ray, J., Chaudhuri, K.S. (1997) An EOQ model with stock-dependent demand, shortage, inflation and time discounting. International Journal of Production Economics, 53(2): 171
Ray, J., Goswami, A., Chaudhuri, K.S. (1998) On an inventory model with two levels of storage and stock-dependent demand rate. International Journal of Systems Science, 29(3): 249
Roy, T.K., Maiti, M. (1998) Multi-objective inventory models of deteriorating items with some constraints in a fuzzy environment. Computers & Operations Research, 25(12): 1085
Silver, E.A., Peterson, R. (1985) Decision systems for inventory management and production planning. New York, itd: Wiley
Urban, T.L. (1992) An inventory model with an inventory-level-dependent demand rate and relaxed terminal conditions. Journal of the Operational Research Society, vol. 43, str. 721-724
Urban, T.L., Baker, R.C. (1997) Optimal ordering and pricing policies in a single-period environment with multivariate demand and markdowns. European Journal of Operational Research, 103(3): 573
Urban, T.L. (1998) An inventory-theoretic approach to product assortment and shelf-space allocation. Journal of Retailing, 74(1): 15
Downloads
Published
Issue
Section
License
Copyright (c) YUJOR
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.