IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v19y2024i1p122-158.html
   My bibliography  Save this article

Optimal pricing and advertisement with allowable shortages for non-instantaneous deteriorating items under inflation and trade credit

Author

Listed:
  • Chirag R. Trivedi
  • Mrudul Y. Jani
  • D.C. Joshi
  • Manish R. Betheja

Abstract

In recent business transactions, the policy of trade credit is usually used to improve product demand and maximise revenue by earning interest. Furthermore, advertisement is a tool that assists the retailer in attracting more consumers. Moreover, demand for products varies depending on the price and while managing inventory most important thing is product deterioration. The current time value of price is calculated at constant inflation rate. The following points are considered: 1) trade credit policy between supplier and retailer; 2) the product demand depends on sales price and advertisement; 3) the product deterioration is non-instantaneous; 4) the current time value of money is calculated at constant inflation rate, and shortages are allowed. The main aim to find the optimality of total profit function with respect to cycle time inventory vanish time, sales price, and frequency of advertisement. A sensitivity analysis of significant parameters and some important managerial implications are analysed.

Suggested Citation

  • Chirag R. Trivedi & Mrudul Y. Jani & D.C. Joshi & Manish R. Betheja, 2024. "Optimal pricing and advertisement with allowable shortages for non-instantaneous deteriorating items under inflation and trade credit," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 19(1), pages 122-158.
    • Handle: RePEc:ids:ijpman:v:19:y:2024:i:1:p:122-158
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=135154
    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:19:y:2024:i:1:p:122-158. 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.