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On price increases and temporary price reductions with partial backordering

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  • Sanjay Sharma

Abstract

In the previous researches, a generalised production-inventory model is considered along with partial backordering, i.e., the situation when a fraction of shortage quantity is not backordered. The work is extended for the case where any supplier offers a short-term price discount. An optimum special order quantity and the potential cost savings are obtained for different possible stock status at the time of replenishment of a special large order size. Similarly, the case in which a price increase is declared by the manufacturers/suppliers is incorporated in the model. Numerical examples are provided in order to illustrate the formulation along with the sensitivity analysis. [Received 11 December 2007; Revised 21 February 2008; Second Revision 04 March 2008; Accepted 06 May 2008]

Suggested Citation

  • Sanjay Sharma, 2009. "On price increases and temporary price reductions with partial backordering," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 3(1), pages 70-89.
    • Handle: RePEc:ids:eujine:v:3:y:2009:i:1:p:70-89
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    Cited by:

    1. Taleizadeh, Ata Allah & Zarei, Hamid Reza & Sarker, Bhaba R., 2017. "An optimal control of inventory under probablistic replenishment intervals and known price increase," European Journal of Operational Research, Elsevier, vol. 257(3), pages 777-791.
    2. Taleizadeh, Ata Allah & Pentico, David W. & Aryanezhad, Mirbahador & Ghoreyshi, Seyed Mohammad, 2012. "An economic order quantity model with partial backordering and a special sale price," European Journal of Operational Research, Elsevier, vol. 221(3), pages 571-583.
    3. Chih-Te Yang & Liang-Yuh Ouyang & Kun-Shan Wu & Hsiu-Feng Yen, 2012. "Optimal ordering policy in response to a temporary sale price when retailer's warehouse capacity is limited," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 6(1), pages 26-49.
    4. Taleizadeh, Ata Allah & Pentico, David W., 2013. "An economic order quantity model with a known price increase and partial backordering," European Journal of Operational Research, Elsevier, vol. 228(3), pages 516-525.
    5. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.

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