An EPQ Model of Delayed Deteriorating Items with Price And Inventory Level Dependent Demand under Markdown Policy

Journal > Special Issue > Special Issue No. – 1, March, 2019 > An EPQ Model of Delayed Deteriorating Items with Price And Inventory Level Dependent Demand under Markdown Policy

March 28, 2019

Authors:

NurzaharaAtika Kamaruzaman,Mohd Omar,

DOI NO:

https://doi.org/10.26782/jmcms.2019.03.00037

Keywords:

Inventory Model,Deteriorating Items,Delayed Deterioration, Price and Inventory Level Dependent Demand,Markdown Policy,

Abstract

This paper developed a delayed deteriorating inventory model with price and inventory level dependent demand that applies markdown policy. In this study, we showed that markdown caters the necessity to balance the need to maximize annual profit with the need to clear end of life inventory Utterly deteriorated items are allowed to carry under markdown policy. The salvage value is incorporated to the deteriorated units. We establish a model that gives the best markdown time and at the same time maximizes annual profit. We also discover the relationship between demand depending factors and markdown policy. A mathematical formulation for the model by using differential equations is developed. Numerical exampleis used to illustrate the effectiveness of the model

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