An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns

Date

2015-03-01

Author

Ghoreishi, Maryam
Weber, Gerhard Wilhelm
Mirzazadeh, Abolfazl

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This paper develops an economic ordering policy model for non-instantaneous deteriorating items with selling price- and inflation-induced demand under the effect of inflation, permissible delay in payments and customer returns. Shortages are allowed and partially backlogged. The customer returns are assumed to increase with both the quantity sold and the product price. The main objective is to determine the optimal selling price, the optimal length of time in which there is no inventory shortage, and the optimal replenishment cycle simultaneously, to minimize the present value of the total profit. An efficient algorithm is presented to find the optimal solution of the developed model. Finally, a numerical example is extracted to solve the presented inventory model using the proposed algorithm.

Subject Keywords

Optimal pricing and inventory, Permissible delay in payments, Non-instantaneous deteriorating items, Customer returns, Inflation

URI

https://hdl.handle.net/11511/51659

Journal

ANNALS OF OPERATIONS RESEARCH

DOI

https://doi.org/10.1007/s10479-014-1739-7

Collections

Graduate School of Applied Mathematics, Article

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JOINT PRICING AND REPLENISHMENT DECISIONS FOR NON-INSTANTANEOUS DETERIORATING ITEMS WITH PARTIAL BACKLOGGING, INFLATION- AND SELLING PRICE-DEPENDENT DEMAND AND CUSTOMER RETURNS Ghoreishi, Maryam; Mirzazadeh, Abolfazl; Weber, Gerhard Wilhelm; Nakhai-Kamalabadi, Isa (American Institute of Mathematical Sciences (AIMS), 2015-07-01) This paper develops an Economic Order Quantity (EOQ) model for non-instantaneous deteriorating items with selling price- and inflation-induced demand under the effect of inflation and customer returns. The customer returns are assumed as a function of demand and price. Shortages are allowed and partially backlogged. The effects of time value of money are studied using the Discounted Cash Flow approach. The main objective is to determine the optimal selling price, the optimal length of time in which there is...
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Citation Formats

M. Ghoreishi, G. W. Weber, and A. Mirzazadeh, “An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns,” ANNALS OF OPERATIONS RESEARCH, pp. 221–238, 2015, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/51659.