Inventory Model for the Deteriorating Items With Price and Time Dependent Trapezoidal Type Demand Rate

Abstract

In real life, many products (e.g. Fruits, vegetables, and fashionable items) degrade naturally following a trapezoidal type demand rate. Inventory, Procurement, pricing and replenishment decision are imperative in case of deteriorating items. In the light of these aspects, we developed a price and time-dependent inventory model with trapezoidal demand rate for deteriorating items. In addition, optimal procurement and pricing policies are determined. The concavity of profit functions with respect to decision variables is discussed analytically. The numerical solution of the model is demonstrated and examined. In order to highlight the effect of changes in the parameters on the optimum solution sensitivity analysis is performed.