Abstract

This paper deals with an inventory model with stock dependent and time varying decreasing demand which increases under the effect of price discount. After some time before deterioration starts a fixed discount on unit selling price is given and when product starts to deteriorate the demand becomes stock independent and is only time decreasing. In such a situation another discount on the selling price is given to boost up the demand and to reduce the loss due to deterioration. The model determines optimal discount to be given on unit selling price during deterioration so as to maximize the. Numerical examples are presented to illustrate the model and sensitivity analysis is also reported.

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