An Inventory Model for Deteriorating Products with Demand Appraise by Promotional Effort

Abstract

In Modern era when trends in technology, fashion and consumer change rapidly; the major problem faced by the retailer is how they can manage the deteriorating stock at time of product's self-life. In general they use some promotions efforts like price discount to prop up demand. We have tried to deal with such problem in this paper. We study the inventory problem of non-instantaneous single period deteriorating items with two parameter weibull distribution. We are considering two types of demand in this paper. First, it is function of time and then contain price factor to grown promotional effort. The holding cost is considered as constant. An approach is proposed to maximize total profit and optimal order quantity. Numerical examples illustrate the theoretical results and sensitivity analysis done as well.