EOQ Model With Imperfect Items and Backorder with Allowable Proportionate Discount using Cross Selling Effects

Abstract

The primary objective of this idea is to create an EOQ model for imperfectly-quality products that takes into account the combined effects of proportionate discount, backorder, clustering with association rule mining, and cross-selling. The ordering policy considering the cross-selling effect was first calculated in this paper. The benefits of cross-selling become especially evident when selling low-quality products. Data mining methods of varying sophistication are used to determine the nature of the connections between the objects. Clustering is used to group together items in the inventory database that are likely to be used together, and then the Apriori algorithm is used to build common item sets from inside each cluster. By the use of cross-selling, the most frequently purchased items are treated as unique entities. In addition, the EOQ of these entities is determined alongside the deficit threshold. Finally, a numerical example is taken into account to verify the results of the suggested work.