Optimal pricing and ordering policy for inflation dependent demand rate under permissible delay in payments
نویسنده
چکیده
This paper deals with economic ordering policies for deteriorating items with inflation dependent demand rate under permissible delay in payments by considering selling price is necessarily higher than purchasing cost. We obtain optimal cycle time and we show the total cost function is concave for both cases i.e. case I and case II. We then develop an algorithm for a retailer to determine its optimal price and optimal order quantity simultaneously when the supplier offers a permissible delay in payments. Numerical example shows the validity of the theoretical results.
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