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
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