Abstract
The objective of this study is to examine the effect of preservation technology investment of an inventory system for instantaneous decaying items. In real life situation, retailer's invested capital in preservation technology leads to lower the rate of deterioration of the products. In this research, we developed an optimising inventory system of preservation technology in decaying items by considering hybrid type of demand. The market demand of daily essential products fluctuates because of two demands: nonlinear and linear. In view of the above two demands, we observe that the demand is price sensitive as well as stock dependent. Moreover, the aim of this proposed study is to obtain the optimum ordering cycle, optimum selling price, optimum preservation technology cost and maximum total profit. Three different numerical examples are provided as a case study with sensitive analysis carried out to validation of the proposed model.
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