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A marketing-oriented inventory model with three-component demand rate dependent on displayed stock level (DSL)

Author

Listed:
  • A K Pal

    (The University of Burdwan)

  • A K Bhunia

    (The University of Burdwan)

  • R N Mukherjee

    (The University of Burdwan)

Abstract

This paper investigates a deterministic inventory system for single item with three-component demand rate. This rate is dependent on selling price, frequency of advertisement and displayed stock level (DSL) in a showroom/shop. Shortages, if any, are allowed and backlogged partially. The storage capacity of the showroom/shop is assumed to be limited (finite). Different scenarios and subscenarios of the system have been mentioned and developed. Some numerical examples are given to illustrate the model. A sensitivity analysis is performed graphically to investigate the effect of changes of the system parameters on the optimal average profit.

Suggested Citation

  • A K Pal & A K Bhunia & R N Mukherjee, 2005. "A marketing-oriented inventory model with three-component demand rate dependent on displayed stock level (DSL)," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 113-118, January.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:1:d:10.1057_palgrave.jors.2601833
    DOI: 10.1057/palgrave.jors.2601833
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    References listed on IDEAS

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    1. Sarker, Bhaba R. & Mukherjee, Subhasis & Balan, Chidambaram V., 1997. "An order-level lot size inventory model with inventory-level dependent demand and deterioration," International Journal of Production Economics, Elsevier, vol. 48(3), pages 227-236, February.
    2. Padmanabhan, G. & Vrat, Prem, 1995. "EOQ models for perishable items under stock dependent selling rate," European Journal of Operational Research, Elsevier, vol. 86(2), pages 281-292, October.
    3. Pal, S. & Goswami, A. & Chaudhuri, K. S., 1993. "A deterministic inventory model for deteriorating items with stock-dependent demand rate," International Journal of Production Economics, Elsevier, vol. 32(3), pages 291-299, November.
    4. Urban, Timothy L., 1995. "Inventory models with the demand rate dependent on stock and shortage levels," International Journal of Production Economics, Elsevier, vol. 40(1), pages 21-28, June.
    5. P. L. Abad, 1996. "Optimal Pricing and Lot-Sizing Under Conditions of Perishability and Partial Backordering," Management Science, INFORMS, vol. 42(8), pages 1093-1104, August.
    6. Giri, B. C. & Pal, S. & Goswami, A. & Chaudhuri, K. S., 1996. "An inventory model for deteriorating items with stock-dependent demand rate," European Journal of Operational Research, Elsevier, vol. 95(3), pages 604-610, December.
    7. Abad, P. L., 1994. "Supplier pricing and lot sizing when demand is price sensitive," European Journal of Operational Research, Elsevier, vol. 78(3), pages 334-354, November.
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    Cited by:

    1. Kartick Dey & Debajyoti Chatterjee & Subrata Saha & Ilkyeong Moon, 2019. "Dynamic versus static rebates: an investigation on price, displayed stock level, and rebate-induced demand using a hybrid bat algorithm," Annals of Operations Research, Springer, vol. 279(1), pages 187-219, August.
    2. Chern, Maw-Sheng & Yang, Hui-Ling & Teng, Jinn-Tsair & Papachristos, Sotiris, 2008. "Partial backlogging inventory lot-size models for deteriorating items with fluctuating demand under inflation," European Journal of Operational Research, Elsevier, vol. 191(1), pages 127-141, November.
    3. Panda, S. & Saha, S. & Goyal, S.K., 2013. "Dilemma of rented warehouse and shelf for inventory systems with displayed stock level dependent demand," Economic Modelling, Elsevier, vol. 32(C), pages 452-462.
    4. Chih-Te Yang & Liang-Yuh Ouyang & Kun-Shan Wu & Hsiu-Feng Yen, 2011. "An optimal replenishment policy for deteriorating items with stock-dependent demand and relaxed terminal conditions under limited storage space," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(1), pages 139-153, March.
    5. M. Palanivel & R. Uthayakumar, 2015. "Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(10), pages 1762-1773, July.
    6. Chaitanyakumar N. Rapolu & Deepa H. Kandpal, 2020. "Joint pricing, advertisement, preservation technology investment and inventory policies for non-instantaneous deteriorating items under trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 274-300, June.

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