A discrete-time probabilistic inventory model for deteriorating items under a known price increase

A discrete-time probabilistic inventory model for deteriorating items under a known price increase

0.00 Avg rating0 Votes
Article ID: iaor20011148
Country: United States
Volume: 29
Issue: 8
Start Page Number: 823
End Page Number: 827
Publication Date: Aug 1998
Journal: International Journal of Systems Science
Authors:
Keywords: deteriorating items
Abstract:

A discrete-time probabilistic inventory model for deteriorating items when the supplier announces a price increase of units from some future date is developed here. Units purchased just before the price increase becomes effective are available at the present lower rate. The problem is to determine an extra large quantity to be procured just before the price increase becomes effective. This is a time decision problem. The model is developed under the conditions of instantaneous delivery, no shortages and a constant fraction of on-hand inventory deterioration. Appropriate formulae have been obtained to procure the gain and the large quantity to be purchased just before the price increases. An example is given to analyze the model developed.

Reviews

Required fields are marked *. Your email address will not be published.