An Inventory Model with Deteriorating Items under Advertisement Efforts

Abstract

In this paper, we proposed an inventory model with deteriorating items under advertisements efforts. The deterioration of the items reduces the quality of the items and advertisement is a one type of business policy which increases the sale of items. Nowadays a lot of companies are using advertisements effort for more sales of items in the short time and the demand is presumed to be reliant on the selling price, and stock is additionally believed to be reliant on environmental initiatives and the impact of advertising. Here we considered purchase price is dependent on order size and all unit quantity discount is also considered. Here, the holding costs increase and are considered time-dependent. This article, aims to find a gross profit function that depends on selling price, greening efforts, and cycle time. Here we develop an algorithm to find a feasible solution. The profit function's concave surface is represented graphically. A numerical example is presented for the justification of the model and also shown the observations through sensitivity analysis.