Maximum-Profit Inventory Model with Generalized Deterioration Rate

Yu-Lan Wang, Ming-Li Chen and Peterson Julian ()
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Yu-Lan Wang: College of Teacher Education, Weifang University of Science and Technical, Weifang 262799, China
Ming-Li Chen: School of Intelligent Manufacturing, Weifang University of Science and Technical, Weifang 262799, China
Peterson Julian: School of General Studies, Weifang University of Science and Technical, Weifang 262799, China

Mathematics, 2022, vol. 10, issue 17, 1-14

Abstract: We developed a maximum profit inventory model with a generalized deterioration rate where the selling rate is dependent on the inventory level that is an extension of two published papers. A complete solution structure is provided to decide the optimal solution with reasonable conditions supported by numerical examples, and then we prove that the optimal solution is independent of the demand pattern. Numerical examples are provided to illustrate our findings. In a previously published paper, three examples had symmetric conditions to decide the local maximum solution. Our approach provides a reasonable explanation for this symmetric phenomenon. Our findings will help researchers develop new inventory models in the future.

Keywords: stock-dependent selling rate; maximum profit; inventory model (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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