Wednesday, 6 January 2021

Optimal Inventory Policy and Optimal Price Discount on Backorders under Ramp Type Demand Environment | Chapter 4 | Insights into Economics and Management Vol. 4

The demand rate is believed to be constant in classical inventory models. In fact, in the inventory system, time plays an important role. In the case of the demand rate of the ramp form, the demand rises to a certain limit over time and then gradually stabilises and becomes constant. In this paper, an inventory model is studied with the demand rate of the ramp form, where holding costs are expressed as a time function that increases linearly. The research involves certain characteristics that are likely to be correlated with certain forms of merchandise, such as seasonal fruit and vegetable inventory, newly introduced fashion pieces, electronic devices, etc. The inventory manager proposes a price if the stock on hand is zero. Discount for clients who are prepared to backorder their demand. The optimal ordering procedure and ordering policy  The optimal discount offered for each backorder is calculated by decreasing the total price in a backorder  Interval of replenishment. It is observed through numerical analysis that it is for low backorder costs,  The warehouse manager will benefit from giving customers a high backorder discount.

Author (s) Details

Dr. Sujan Chandra
Department of Statistics, Bethune College, Kolkata, India.

View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/348

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