Deteriorated economic production quantity (EPQ) model for declined quadratic demand with timevalue of money and shortages

Bhanupriya Dash, Monalisha Pattnaik, Hadibandhu Pattnaik
2014 Applied Mathematical Sciences  
A deteriorating inventory model using time-value of money with price dependent declined quadratic demand is developed for a deterministic inventory system. This study applied the discounted cash flows (DCF) approach for problem analysis. The objective of this model is to maximize the net present value profit so as to determine the optimal time period and order quantity. The numerical analysis shows that an appropriate policy can benefit the retailer and that policy is important, especially for
more » ... nt, especially for deteriorating items. Finally, sensitivity analysis of opti- Bhanupriya Dash, Monalisha Pattnaik and Hadibandhu Pattnaik mal solution with respect to the major parameters are also studied to draw some decisions with managerial implications for competitive advantage.
doi:10.12988/ams.2014.43178 fatcat:qr3nh3djazd6dduw74fzzj534q