Abstract : For businesses that deal with perishable goods, efficient management of stock levels is key to minimizing losses and maximizing profits, making inventory management a crucial part of supply chain optimization. To tackle the challenges of managing products that are getting worse, this study suggests a new inventory model that incorporates stock-dependent demand, nonlinear holding costs, multiplicative pricing, and unique pricing techniques. According to this model, the demand for products is said to be affected by the amount of stock on hand and might decrease over time. In addition, because there are different costs associated with maintaining different amounts of inventory, the holding costs are thought to be nonlinear. The pricing technique is also multiplicative, so the price per unit changes depending on how many units are ordered. Maximizing earnings and easing the limitation of zero ending inventory while guaranteeing appropriate availability of items to meet customer demand is the goal of the model, which successfully balances order quantities, stock levels, and pricing methods. The suggested model is shown to be effective in controlling inventory of perishable commodities under different situations and parameter settings through numerical experiments. In making inventory decisions for perishable goods, the findings stress the significance of stock-dependent demand, nonlinear holding costs, and multiplicative pricing.
Cite : Purwar, V. K., & Moses, S. (2024). Improving The Effectiveness Of Inventory Control: A Model For Deteriorating Goods With Multiplicative Price And Stock-Dependent Demand Features (1st ed., pp. 281-288). Noble Science Press. https://doi.org/10.52458/9788197112492.nsp.2024.eb.ch-29
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