Abstract
This study proposes a continuous production inventory model for deteriorating items with time and price-dependent demand under markdown policy for both fresh and deteriorated units. In this model, we have adopted the markdown policy to reduce the inventory and to increase the profit or rate of sale of an article, typically for clearance at the end of the season or to sell off obsolete merchandise at the end of its life. Completely deteriorated items are allowed to carry under markdown. Using the differential equations and under various cost considerations, expressions for total profit function, optimum inventory level and cycle length are obtained. All the expressions are illustrated with the help of a numerical example. Sensitivity analysis is carried out to demonstrate the effect of changing parameter values on the optimal solution of the system.
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Srivastava, M., Gupta, R. An EPQ model for deteriorating items with time and price dependent demand under markdown policy. OPSEARCH 51, 148–158 (2014). https://doi.org/10.1007/s12597-013-0124-7
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DOI: https://doi.org/10.1007/s12597-013-0124-7