Ordering and Pricing Fuzzy Optimal Replenishment Policies for Deteriorating Items with Two Dimensional Demand under Disposal Mechanism Ordering and Pricing Fuzzy Optimal Replenishment Policies for Deteriorating Items with Two Dimensional Demand under Disposal Mechanism

Abstract

This paper tries to incorporate previous studies to develop the ordering and pricing inventory models. That is, I want to investigate the optimal decision parameters for deteriorating items with stock and price dependent demand under disposal mechanism. As markets have become more and more competitive, many business practices show that the presence of a larger quantity of goods displayed may attract more customers than that with a smaller quantity of goods essentially this study focuses pricing and ordering strategies since the demand for the goods may be affected for a firm that sells a seasonal item over a finite planning time. In this paper, pricing is a major strategy for a retailer to obtain its maximum profit. This paper considers the modification of EOQ formula in the presence of imprecisely estimated system cost i.e. holding cost and ordering cost. These imprecise parameters are presented by fuzzy numbers defined on a bounded internal on the axis of real numbers. The main contribution to literature is the inclusion of the fuzzy approach in continuous crisp model. Here, for the times of price changes, I give some sufficient conditions for optimal decision rules. The analysis shows the influence of key model parameters.