Optimal Pricing, Quality Investment and Replenishment Policies for Perishable Items

Authors

  • Ashaba D. Chauhan  Department of Mathematics, D. L. Patel Science College, Himmatnagar, Gujarat, India
  • Hardik N. Soni  Chimanbhai Patel Post Graduate Institute of Computer Applications, Ahmedabad, Gujarat, India

Keywords:

Abstract

This paper discusses optimality of replenishment cycle time, selling price, quality investment cost and order quantity with simultaneous deterioration of quality and physical quantity. Most of models assume the quality of items does not decay before their expiration dates. In practice, the quality of many products often deteriorate over time, applying quality investment makes us able to maintain freshness of items. The quality of an item usually plays an important role in influencing factor of demand for product. Demand rate is dependent on the selling price and the quality of an product. The model seeks to maximize the total profit of the model by determining the optimality of decision variable. In order to analyse the behaviour of the model and numerical example accompanied by sensitivity analyses of key parameters of the model are provided.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2018-05-30

Issue

Volume 4, Issue 8, May-June-2018

Section

Research Articles

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Ashaba D. Chauhan, Hardik N. Soni "Optimal Pricing, Quality Investment and Replenishment Policies for Perishable Items" International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 4, Issue 8, pp.545-551, May-June-2018.