Inventory model for non-instantaneous deterioration and price-sensitive trended demand with learning effects

Abstract

This paper addresses a working model for non-instantaneous deteriorating items including the learning effect on various costs and the preservation technology investment to reduce the deterioration rate. The system includes time and price sensitive demand. The objective is to maximise the total profit per unit time by finding optimal joint selling price, replenishment cycle time, the preservation technology investment per unit time, ordering quantity and the shortage period. A numerical example is presented to validate the policy investigated in this paper. Further, the sensitivity analysis about the key parameters is conducted to obtain the managerial insights.