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Customer purchasing deeds may be affected by factors such as selling price and inventory level instead of demand which is considered either constant or function of single variable which is not feasible. Consequently in the present study we have considered demand rate as a function of stock-level and selling price both. In present study, in order to develop this model it has been assumed that items are exponentially decaying and shortages are partially backlogged and most realistic backloggingdoi:10.15415/mjis.2014.22012 fatcat:hi3d22rm2ngqhgk3dbkw3l4ac4