Nita H. Shah - Department of Mathematics, Gujarat University, Ahmedabad-۳۸۰۰۰۹, Gujarat, India
Chetansinh R. Vaghela - Department of Mathematics, Marwadi University, Rajkot-۳۶۰۰۰۳, Gujarat, India

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.

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