| Article ID: | iaor2009208 |
| Country: | Serbia |
| Volume: | 17 |
| Issue: | 2 |
| Start Page Number: | 165 |
| End Page Number: | 176 |
| Publication Date: | Jul 2007 |
| Journal: | Yugoslav Journal of Operations Research |
| Authors: | Chaudhuri K.S., Giri B.C., Mandal S. |
| Keywords: | inventory |
Single price discount in unit cost for bulk purchasing is quite common in reality as well as in inventory literature. However, in today's high-tech industries such as personal computers and mobile industries, continuous decrease in unit cost is a regular phenomenon. In the present paper, an attempt has been made to investigate the effects of continuous price decrease and time-value of money on optimal decisions for inventoried goods having time-dependent demand and production rates. The proposed models are developed over a finite time horizon considering both shortages and without shortages in inventory.