Retailer’s replenishment and pricing decisions for non-instantaneous deterioration and price-dependent demand

Abstract

Abstract             In this research, an integrated inventory model for non-instantaneous deteriorating items is analyzed when demand is sensitive to changes in price. The price used in this research is a time-dependent function of the initial selling price and the discount rate. To control the deterioration rate of items at the storage facility, investment in preservation technology is incorporated. To provide a general framework to the model, an arbitrary holding cost rate is used. Toward the end of the paper, a numerical case is given to approve the model and the impacts of the key parameters of the model are studied by sensitivity analysis to deduce managerial insights.

Keywords

• Keywords: Inventory
• Non-instantaneous deterioration
• Price-dependent demand
• Variable holding cost
• Dynamic pricing