Pricing and Lot sizing of a Decaying item under Group Dispatching with Time-dependent Demand and Decay Rates
نویسندگان
1 Department of Industrial Engineering, Islamic, Azad University, South Tehran Branch
2 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran
doi
10.24200/sci.2017.4449چکیده
Determining appropriate inventory and pricing policies is an important issue in scientific and industrial researches. Here an inventory control model of a decaying item with zero lead time is studied. Two mathematical models under different assumptions are developed.In the first model deterioration rate is time-dependent and demand rate is price sensitive while in the second model deterioration rate is constant and demand rate is time- and price-dependent. Aim of this research is optimizing total cost by deriving decision variables such as dispatch cycle length, order quantity and wholesale price. To optimize the total cost a shipment group dispatching policy is used.
