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Inventory models with stock- and price- dependent demand for deteriorating items based on limited shelf space. (English) Zbl 1265.91049

Summary: This paper deals with the problem of determining the optimal selling price and order quantity simultaneously under EOQ model for deteriorating items. It is assumed that the demand rate depends not only on the on-display stock level but also on the selling price per unit, and that the amount of shelf/display space is limited. We formulate two types of mathematical models to manifest the extended EOQ models for maximizing profits and derive the algorithms to find the optimal solution. Numerical examples are presented to illustrate the developed models and a sensitivity analysis is reported.

MSC:

91B24 Microeconomic theory (price theory and economic markets)
90B05 Inventory, storage, reservoirs
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