Volume 27, Issue 2 (1-2009)
2009, 27(2): 19-29 |
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M. Rabbani, R. Tavakkoli-Moghaddam, and H. Vahdan. A New Inventory Model for Deteriorating Items with Price-dependent Demand, Time-value of money, and Shortages. Journal of Advanced Materials in Engineering (Esteghlal) 2009; 27 (2) :19-29
URL: http://jame.iut.ac.ir/article-1-449-en.html
URL: http://jame.iut.ac.ir/article-1-449-en.html
Abstract: (6564 Views)
This paper presents a discounted cash-flow approach to an inventory model for deteriorating items with the
two-parameter Weibull distribution. According to our proposed model, two shortages are considered: back-orders and lost-sales,
in which the back-order rate is a varying function of the time when the shortage happens. In general, the demand rate is a linear function of the selling price. The objective of this model is to determine the optimal pricing policy and the optimal throughput time in such a way that the total net present value of profits is maximized in the given planning horizon. Finally, a numerical example is provided to solve the model presented using our proposed three-stage approach.
