international journal of operations research2017Vol. 14pp. 1-10
212
khedlekar2017internationalpricing
Abstract
The inventory model of seasonal products is developed in which the deterioration controlled by
investing some cost of item preservation technology. In diminishing market, price sensitiveness analyzed with an
exponentially declining demand. The object is to optimize the total profit per unit time, optimal selling price, length
of replenishment cycle and preservation technology investment. We have shown that there exist an optimal selling
price, and length of replenishment cycle that maximize the total profit. Also, we have proved the total profit per unit
time is a concave function of the preservation technology investment. Finally, the model is illustrated by numerical
example and fallowed by sensitive analysis.