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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Bibliographic Details
Published inApplied mathematics and computation Vol. 217; no. 13; pp. 6248 - 6259
Main Author Sankar Sana, Shib
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier Inc 01.03.2011
Elsevier
Subjects
Calculus of variations and optimal control
Computation
Demand
Deterioration
Economics
EOQ
Exact sciences and technology
Finite horizon
Inventory
Marketing
Mathematical analysis
Mathematical models
Mathematics
Numerical analysis
Numerical analysis. Scientific computation
Optimization
Price-sensitive demand
Profit
Sales
Sciences and techniques of general use
Sensitivity analysis
Finite horizon
Profit
Deterioration
Price-sensitive demand
EOQ
Inventory
Numerical analysis
Sensitivity analysis
Economic model
Applied mathematics
Optimal solution
Ordering
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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.
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