An EOQ model for rebate value and selling-price-dependent demand rate with shortages
type: Item
instance of: scholarly article
title: An EOQ model for rebate value and selling-price-dependent demand rate with shortages
zbMATH Open document ID: 1204.90007
DOI: 10.1504/IJMOR.2011.037315
author: M. Valliathal
author: R. Uthayakumar
published in: International Journal of Mathematics in Operational Research
publication date: 2011-02-04T00:00:00Z
review text: Summary: We develop a deterministic purchasing inventory model for a single item over an infinite horizon. In addition, shortages are allowed and the unsatisfied demand is partially backlogged. The model is studied under the replenishment policy, shortages followed by inventory. The backlogging rate is any non-increasing function of the waiting time up to the next replenishment. The objective of this model is to maximise the Total Profit (TP), which includes sales revenue, purchase cost, the set-up cost, holding cost, rebate redemption cost, shortage cost and opportunity cost due to lost sales. Here, demand varies with price and rebate value. The existence and uniqueness of the proposed systems are examined. Finally, numerical examples are presented to determine the developed model and the solution procedure. Sensitivity analysis of the optimal solution with respect to major parameters is carried out. We propose a solution procedure to find the solution and obtain some managerial results by using sensitivity analysis.
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 5845426
zbMATH Keywords: inventory modelling
zbMATH Keywords: shortages
zbMATH Keywords: selling price
zbMATH Keywords: price dependent demand
zbMATH Keywords: rebate value
zbMATH Keywords: replenishment policy
zbMATH Keywords: backlogging rate
zbMATH Keywords: total profit
zbMATH Keywords: EOQ models
zbMATH Keywords: economic order quality
MaRDI profile type: Publication
full work available at URL: ijmor.2011.037315
OpenAlex ID: W2003596677
description: scientific article; zbMATH DE number 5845426