Effect of Future Price Increase for Products with Expiry Dates and Price-Sensitive Demand under Different Payment Policies

The current study works with an inventory management strategy under the discount cash flow approach for perishable commodities expiry dates, price-sensitive demand, and investment in preservation technology. In addition, this examines probable influence of price-increase on replenishment retailer where specific delivery units can be purchased. Furthermore, model, two circumstances are deliberated: (I) when time matches reordering or (II) emerges within duration sale. Before price increase, supplier provides payment policies to from which they choose one. either: (1) a permissible delay regular orders (2) delivery. key goal is optimize overall profit respect sales price, technology, cycle during depletion algorithm created results seven numerical illustrations discussed explain along special case. Finally, display pertinence sensitivity analysis main parameters performed important managerial implications. findings research before gets maximum if chooses policy delivery; how much order place generate profit; (3) demand assumption future increase negatively affect retailer’s profit, benefits initially number increase.