Demand promotion by upgradation under a stock-dependent demand situation – a model

The idea of demand promotion by upgrading the existing system of the selling centre has been modelled in this article. The consumption rate is assumed to be dependent on the stock level. The problem has been reduced to a maximizing problem. The algorithmic approach for solving this maximizing problem is also provided. Objective is to maximize the net profit over a prescribed time. An increasing convex upgradation cost is considered. Exponential upgradation cost has been considered for the numerical examples.