Multi-item EOQ model while demand is sales price and price break sensitive

Brojeswar Pal, Shib Sankar Sana and Kripasindhu Chaudhuri

Economic Modelling, 2012, vol. 29, issue 6, 2283-2288

Abstract: In this paper, the authors study a multi-item deterministic EOQ (economic order quantity) model for a vendor when the demand rate of the essential commodities decreases quadratically with increasing sales price and increase exponentially with increasing level of price breaks. A price discount is offered to the customers when the revenue of the vendor crosses the level of price break. The main aim of the present article is to find out the optimal order quantities, optimal selling prices and optimal level of price break in order to maximize the average profit of the whole products. Numerical examples are also illustrated to test of our proposed model.

Keywords: Multi-item; Inventory; Price-sensitive demand; Price-break; Discount (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:6:p:2283-2288

DOI: 10.1016/j.econmod.2012.06.039

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