Retailer’s Replenishment and Pricing Decisions for Non Instantaneous Deterioration and Price-Dependent Demand

In this research, an integrated inventory model for noninstantaneousdeteriorating items is analyzed when demand issensitive to changes in price. The price used in this research is atime-dependent function of the initial selling price and discountrate. To control the deterioration rate of items at the storagefacility, investment in preservation technology is incorporated. Toprovide a general framework to the model, an arbitrary holdingcost rate is used. Toward the end of the paper, a numerical case isgiven to approve the model and the impacts of the key parametersof the model are studied by sensitivity analysis to deducemanagerial insights.

Keywords:

Inventory , Non-instantaneous Deterioration , Price-dependent demand , Variable holding cost , Dynamic pricing