An EOQ model for perishable products with discounted selling price and stock dependent demand

S. Panda*, S. Saha, M. Basu

*Kontaktforfatter

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46 Citationer (Scopus)

Abstract

A single item economic order quantity model is considered in which the demand is stock dependent. After a certain time the product starts to deteriorate and due to visualization effect and other aspects of deterioration the demand becomes constant. In that situation a discount on selling price provides significant increment in demand rate. In this paper we investigate how much discount on selling price may be given during deterioration to maximize the profit per unit time and whether a pre-deterioration discount affects the unit profit or not. A mathematical model is developed incorporating both pre- and post deterioration discounts on unit selling price, where analytical results reveal some important characteristics of discount structure. A numerical example is presented and sensitivity analysis of the model is carried out.

OriginalsprogEngelsk
Artikelnummer31
TidsskriftCentral European Journal of Operations Research
Vol/bind17
Udgave nummer1
Sider (fra-til)31-53
Antal sider23
ISSN1435-246X
DOI
StatusUdgivet - mar. 2009
Udgivet eksterntJa

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