Purchasing inventory models for deteriorating items with price-growth-exponential demand under inflation – in 4th order equation

C.K. Sivashankari and V. Choudri

International Journal of Procurement Management, 2025, vol. 22, issue 3, 313-349

Abstract: In this study, we propose a buying inventory model for degrading products with the price-growth-exponential dependent demand under inflation in 4th-order equations. The literature has a variety of demand models, such as price-dependent, stock-dependent, exponential, quadratic, linear, and constant. However, no research has used the price-growth-exponential dependent demand model. Three models have been created: the first model utilises price-dependent demand with the growth of demand in the fourth-order equation; the second model utilises price-dependent demand, growth of demand; and continuous compound demand in the fourth order equation, and the third model utilises inflation in model 2 with the fourth order equation. In all three models, the price-breakeven point is determined, and the law of demand is varied. Comparative research is performed among price-growth of demand, price-growth-exponential demand, and price-growth-exponential demand under the time value of money. The holding cost is less in model three. For every model, mathematical models are outlined, and pertinent examples are given to clarify the suggested process. Achieving the best order amounts and order intervals in relation to overall cost and profit is the goal here. Sensitivity analyses are included for the three different models. VB 6.0 was used to create the required data.

Keywords: price-dependent demand; growth of demand; continuous compound demand; optimality; forth order equations; time-value of money. (search for similar items in EconPapers)
Date: 2025
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