Impact of publicity effort and variable ordering cost in multi-product order quantity model of units lost sales due to deterioration
Journal Title: LogForum - Year 2018, Vol 14, Issue 3
Abstract
Background: This model investigates the instantaneous multi-product economic order quantity model by allocating the percentage of units lost due to deterioration in an on-hand inventory with promotional investment and functional major ordering cost. The objective is to maximize the net profit so as to determine the order quantity, publicity effort factor, the cycle length and number of units lost due to deterioration. Methods: The mathematical model with algorithm is developed to find some important characteristics for the concavity of the net profit function. Numerical examples are provided to illustrate the results of proposed model which benefits the retailer for ordering the deteriorating items. Finally, sensitivity analysis of the net profit for the major inventory parameters is also carried out. Results and conclusions: The proposed model is a general framework that considers wasting/ none wasting the percentage of on-hand multi-product inventory due to deterioration with publicity effort cost and functional major ordering cost simultaneously.
Authors and Affiliations
Monalisha Pattnaik, Padmabati Gahan
Keywords
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- EP ID EP508289
- DOI 10.17270/J.LOG.2018.291
- Views 140
- Downloads 0
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