An EOQ model with quantity incentive strategy for deteriorating items and partial backlogging

Abstract

Article history: Received April 2, 2016 Received in revised format September 10, 2016 Accepted October 7 2016 Available online October 7 2016 Quantity discount is a usual term in business and has been a topic of interest for a long time, but have received very little attention. Many vendors offer different schemes to their customers to increase the existing size of order, which results in higher annual sale for the vendor and a lower purchasing price for the retailer. Therefore, the buyer adjusts his/her selling price, which influences the demand for the product. The objective of this paper is to develop an inventory model for deteriorating products with quantity discount and partial backlogging to determine the optimal ordering quantity for the retailer optimizing the total cost or profit of the associated model. A numerical example is also given to illustrate the model and its significant features. Growing Science Ltd. All rights reserved. 7 © 201