Price-sensitive demand for perishable items – an EOQ model
This paper develops a finite time-horizon deterministic EOQ ( Economic Order Quantity) model where the rate of demand decreases quadratically with selling price. Prices at different periods are considered as decision variables. The objective is to find the optimal ordering quantity and optimal sales...
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Published in | Applied mathematics and computation Vol. 217; no. 13; pp. 6248 - 6259 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Amsterdam
Elsevier Inc
01.03.2011
Elsevier |
Subjects | |
Online Access | Get full text |
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Summary: | This paper develops a finite time-horizon deterministic EOQ (
Economic Order Quantity) model where the rate of demand decreases quadratically with selling price. Prices at different periods are considered as decision variables. The objective is to find the optimal ordering quantity and optimal sales prices that maximizes the vendor’s total profit. The results are discussed with numerical examples. Sensitivity analysis of the optimal solution with respect to the key parameters of the system is carried out. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0096-3003 1873-5649 |
DOI: | 10.1016/j.amc.2010.12.113 |