IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v14y2021i6p702-723.html
   My bibliography  Save this article

Inventory policies for non-instantaneous deteriorating items with preservation technology investment under price-sensitive time-dependent demand

Author

Listed:
  • Nita H. Shah
  • Pratik H. Shah
  • Milan B. Patel
  • Wakhid Ahmad Jauhari

Abstract

In this paper, we formulate a mathematical inventory model for non-instantaneous deteriorating items under price-sensitive and quadratic time-dependent demand. Products in the inventory system are considered to be deteriorated at a constant rate after a certain time of periods. Preservation technology investments are taken into account to reduce the deterioration rate. The objective of the model is to find the optimal cycle time, selling price, preservation cost and ordering quantity in order to maximise the total profit of retailer. An iterative procedure is proposed to solve the mathematical problems and its application is validated with a numerical example. The results from sensitivity analysis show that by investing money in preservation technology, the retailer can set a cheaper selling price and increase the total profit. It is also observed that the changes in holding cost and cost price significantly affect the optimal values of selling price and cycle time.

Suggested Citation

  • Nita H. Shah & Pratik H. Shah & Milan B. Patel & Wakhid Ahmad Jauhari, 2021. "Inventory policies for non-instantaneous deteriorating items with preservation technology investment under price-sensitive time-dependent demand," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 14(6), pages 702-723.
    • Handle: RePEc:ids:ijpman:v:14:y:2021:i:6:p:702-723
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=117888
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijpman:v:14:y:2021:i:6:p:702-723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=255 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.