%0 Journal Article
%T Optimal Policies for Perishable Items
when Demand Depends on Freshness of
Displayed Stock and Selling Price
%A Azharuddin Shaikh
%A Poonam Mishra
%J -
%D 2017
%R 10.21767/2394-9988.100060
%X Display of stock plays an effective role to boost up the demand as it encourages customer to buy more. For perishable good freshness is also an important factor affecting its demand, as consumers look for fresh items. Selling price is also a major factor affecting the demand. This paper proposes an inventory model where demand depends on selling price, freshness of item and displayed stock. The traditional assumption of zero ending inventories is relaxed to a non-zero ending inventory. As it may be profitable to have a closeout sale at a markdown price, and always keep on-hand fresh displayed stocks if the demand is freshness-and- stock dependent. The objective is to maximize the total profit with respect to three decision variables (i.e., unit price, cycle time and ending-inventory level). Numerical examples are presented to validate the model and sensitivity analysis of inventory parameters is done to understand their effect in determining optimal policies.
%K Non-zero ending inventory
%K Perishable goods
%K Selling price
%K Stockdependent
demand
%K list of open access journals
%K open access
%K open access journals
%K open access publication
%K open access publisher
%K open access publishing
%K open access journal articles
%K imedpub
%K imedpub publishing
%K insight medical publishing
%K imedpub online
%U https://www.imedpub.com/articles/optimal-policies-for-perishable-itemswhen-demand-depends-on-freshness-ofdisplayed-stock-and-selling-price.php?aid=20933