Replenishment policy for deteriorating items under price discount

Abstract

This paper deals with a single-item inventory model with constant rate of deterioration and shortage is not allowed. The stock-dependent and price-sensitive demand is considered. Price discount is provided to uplift the market sell also the preservation technology is applied to reduce deterioration. The objective of this paper is to obtain the optimal replenishment time, preservation technology investment, quantity, and profit. The model is illustrated by numerical examples and graphical analysis. Discount policy could help to any business organization for smooth running the business and obtain maximum profit.