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Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand

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  • Nita H. Shah

    (Gujarat University)

  • Chetansinh R. Vaghela

    (Marwadi Education Foundations Group of Institutions)

Abstract

This paper focuses on an economic order quantity model for deteriorating items with time and advertisement dependent demand under the effect of inflation. The items in inventory deteriorate at a constant rate. The expenses on advertisement depend on the effort of the firm. The objective of the study is to maximize profit function with respect to initial lot size and investment in advertisement. The concavity of the profit function is shown graphically with respect to the decision variable. Numerical example is provided to illustrate the model. Further, sensitivity analysis is carried out to study the effects of different parameters.

Suggested Citation

  • Nita H. Shah & Chetansinh R. Vaghela, 2017. "Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand," OPSEARCH, Springer;Operational Research Society of India, vol. 54(1), pages 168-180, March.
    • Handle: RePEc:spr:opsear:v:54:y:2017:i:1:d:10.1007_s12597-016-0274-5
    DOI: 10.1007/s12597-016-0274-5
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    References listed on IDEAS

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    Cited by:

    1. Ajoy Hatibaruah & Sumit Saha, 2023. "An inventory model for two-parameter Weibull distributed ameliorating and deteriorating items with stock and advertisement frequency dependent demand under trade credit and preservation technology," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 951-1002, June.
    2. Andrés Olivares & Karla Soria-Barreto, 2019. "Propuesta de política óptima de compras para medicamentos en droguería del departamento de salud de Vicuña," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 34(2), pages 1-21, October.
    3. Khakbaz, Amir & Mensi, Walid & Tirkolaee, Erfan Babaee & Hammoudeh, Shawkat & Simic, Vladimir, 2023. "The combined effects of interest and inflation rates on inventory systems: A comparative analysis across countries," International Journal of Production Economics, Elsevier, vol. 266(C).

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