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Annals of Operations Research

, Volume 226, Issue 1, pp 221–238 | Cite as

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

  • Maryam Ghoreishi
  • Gerhard-Wilhelm Weber
  • Abolfazl Mirzazadeh
Article

Abstract

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.

Keywords

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

Notes

Acknowledgments

The authors greatly appreciate the anonymous referees for their valuable and helpful suggestions regarding earlier version of the paper.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Maryam Ghoreishi
    • 1
  • Gerhard-Wilhelm Weber
    • 2
  • Abolfazl Mirzazadeh
    • 1
  1. 1.Department of Industrial EngineeringKharazmi UniversityTehranIran
  2. 2.Institute of Applied MathematicsMiddle East Technical UniversityAnkaraTurkey

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