Inventory models with stock- and price-dependent demand for deteriorating items based on limited shelf space

Chang, Chun-Tao; Chen, Yi–Ju; Tsai, Tzong‐Ru; Wu, Shuo‐Jye

doi:10.2298/yjor1001055c

Cited by 40 publications

(21 citation statements)

References 19 publications

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“…The model was solved allowing for inventory shortages and time dependent holding costs. Chang et al (2010) dealt with the problem of determining the optimal selling price and order quantity simultaneously for the EOQ model for items with deterioration. They also assumed that the demand rate was dependent on both the selling price and the limited stock level on display and derived algorithms to maximise profit.…”

Section: Literature Reviewmentioning

confidence: 99%

An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

Tsoularis

2015

IJMOR

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This article considers the deterministic singular optimal control problem of profit maximisation for inventory replenished at a variable rate and depleted by demand which is assumed to vary with price and stock availability. Optimal policies for the product order rate and price are derived using the maximum principle. Several initial inventory regions are identified as potential inventory states for feasible profit optimisation. Bounds on the maximum price for maximising net profit or minimising loss are obtained. Numerical simulations accompanied by phase diagrams are performed to support the theoretical findings.Keywords: optimal control; Hamiltonian; maximum principle; transversality condition; costate variable; bang-bang control.Reference to this paper should be made as follows: Tsoularis, A. (2015) 'An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price', Int.

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Section: Literature Reviewmentioning

confidence: 99%

An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

Tsoularis

2015

IJMOR

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“…Roy and Chaudhuri (2009) investigate two production inventory models, assuming that demand rate is a function of instantaneous inventory level. Chang et al (2010) extend the EOQ model by assuming that demand rate depends on both stock-on-display and selling price. Petruzzi et al (2009) explore a newsvendor model in which demand is controlled strategically.…”

Section: Inventory Billboard Effectmentioning

confidence: 99%

The inventory billboard effect on the lead-time decision

Zhai

Liu

2015

International Journal of Production Economics

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“…Maiti et al (2009) presented an inventory model with price-dependent demand for an item in stochastic environment. Chang et al (2010) introduced inventory models for finding the optimal selling price and order quantity under EOQ model for deteriorating item in which demand depends on the on-display stock level as well as selling price per unit. studied a deteriorating inventory model by assuming demand as a function of price and season.…”

Section: Introductionmentioning

confidence: 99%

An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount

Rastogi¹,

Singh²,

Kushwah³

et al. 2017

10.5267/j.uscm

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In this paper we develop an inventory model for deteriorating items with price sensitive demand. Generally the vendor offers a cash discount or fix time period to the retailer to pay all the dues. According to the availability of money the retailer chooses his/her option. In this paper we discuss the possible cases of permissible delay and cash discount. The shortages are allowed in this model and are partially backlogged. Holding cost is considered as varying function of time, which reflects a more realistic concept. The purpose of this study is to optimize the overall cost of the system and to compute optimal ordering quantity. Numerical examples for different cases are also presented to illustrate the study. A sensitivity analysis with regard to distinct associated parameters is shown to make sure the constancy of the model.

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Inventory models with stock- and price-dependent demand for deteriorating items based on limited shelf space

Cited by 40 publications

References 19 publications

An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

An optimal inventory pricing and ordering strategy subject to demand dependent on stock level and price

The inventory billboard effect on the lead-time decision

An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount

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