TAILIEUCHUNG - Pricing model for instantaneous deteriorating items with partial backlogging and different demand rates

In this study, a single product is considered which starts to deteriorate with constant rate of replenishment and demand rate is time and price dependent exponential function. | Pricing model for instantaneous deteriorating items with partial backlogging and different demand rates Uncertain Supply Chain Management 7 2019 97 108 Contents lists available at GrowingScience Uncertain Supply Chain Management homepage uscm Pricing model for instantaneous deteriorating items with partial backlogging and different demand rates Hetal Patel U. V. Patel College of Engineering Ganpat University India CHRONICLE ABSTRACT Article history In this study a single product is considered which starts to deteriorate with constant rate of Received December18 2017 replenishment and demand rate is time and price dependent exponential function. Shortage is Accepted April 20 2018 allowed with partial back logging and the relationship between backorder rate and waiting time Available online is considered to be exponential. The aim is to decide pricing strategy and maximize total April 20 2018 Keywords average profit function. Total profit function is optimized analytically and proved to be Instantaneous deterioration concave function of price. Finally numerical example is given to illustrate the implementation Price discount of the algorithm followed by the sensitivity analysis. Back order profit Price and time dependent 2019 by the authors licensee Growing Science Canada 1. Introduction Product deterioration is very critical issue in various systems using inventory Bakker et al. 2012 . Deterioration is considered as damage vaporization dryness spoilage etc. Blood bank volatile liquids medicine food stuff are deteriorating inventory goods which deteriorate during their storage period Dye et al. 2007 Goyal amp Giri 2001 . Loss due to deterioration cannot be negligible. Ghare and Schrader 1963 initiated the journey of studying deteriorating inventory product by developing a model for deteriorating inventory item with no shortage and constant deterioration rate. However against the assumption of constant deterioration rate Covert and Philip 1973

• Kinh tế học
• Back order profit
• Price and time dependent
• Price dependent exponential function
• Instantaneous deteriorating item
• Backorder rate and waiting time