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Sales team's initiatives and stock sensitive demand — A production control policy

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  • Sana, Shib Sankar

Abstract

The present article deals with an optimal production control policy for stock and sales team's initiatives sensitive demand. The capacity of the production quantity and stock of produced items are state variable and the effort of sales-team/agent is a control variable in this model. Finally, a net profit function by trading off procurement cost, cost for effort of sales-team, cost for capacity of production and sales price is maximized by Pontryagin's Maximal Principle. The local and global stability analysis of the dynamical systems is well performed. The proposed model is justified by proper numerical illustration.

Suggested Citation

  • Sana, Shib Sankar, 2013. "Sales team's initiatives and stock sensitive demand — A production control policy," Economic Modelling, Elsevier, vol. 31(C), pages 783-788.
    • Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:783-788
    DOI: 10.1016/j.econmod.2013.01.026
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    References listed on IDEAS

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    Cited by:

    1. Tien-Yu Lin & Kuo-Lung Hou, 2015. "An imperfect quality economic order quantity with advanced receiving," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 23(2), pages 535-551, July.
    2. M. Palanivel & R. Uthayakumar, 2017. "A production-inventory model with promotional effort, variable production cost and probabilistic deterioration," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 290-300, January.
    3. Tal Avinadav & Tatyana Chernonog & Yael Lahav & Uriel Spiegel, 2017. "Dynamic pricing and promotion expenditures in an EOQ model of perishable products," Annals of Operations Research, Springer, vol. 248(1), pages 75-91, January.

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