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Inventory Optimization with Quadratic Demand, Trade Credit & Shortages

Inventory Optimization with Quadratic Demand, Trade Credit & Shortages

Monika Naik / Rituben Baria

71,90 €
IVA incluido
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Editorial:
KS OmniScriptum Publishing
Año de edición:
2026
Materia
Matemáticas
ISBN:
9786630347562
71,90 €
IVA incluido
Disponible

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This study derives an Economic Order Quantity (EOQ) model for inventory with delayed degradation, where demand depends on the selling price and a quadratic time factor. incorporating a partial backlogging mechanism, a trade credit policy, and a return policy that does not issue full refunds. The objective is to maximize the retailer’s total profit by optimizing the selling price and replenishment schedule. Sensitivity analysis reveals that the pricing strategy is highly elastic; a 1% parameter shift triggers a 3.87% price change. Furthermore, consumer backordering patience is moderate, with only 44.95% of out-of-stock periods resulting in backorders, necessitating safety stock or shorter lead times to prevent lost sales. Despite this, total profit exhibits stable, positive scaling, increasing by 1.012% per 1% parameter shift, underscoring the model’s overall financial robustness.

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