Abstract
The study of inventory system with deteriorating item has a special significance as it influences the profit and revenue of a retailer. It is generally observed that the demand rate of consumer goods is dependent on the selling price of the product. An inventory model for price dependent demand with partial backlogging and time dependent deterioration rate has been proposed with the objective to determine the maximum average profit, optimal selling price and optimal order quantity of the system. The necessary and sufficient conditions for the existence of the optimal solution are determined. The sensitivity analysis has been carried out and effectiveness of the proposed model has been demonstrated numerically.
Published Version
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