Inventory Ordering Policies of Delayed Deteriorating Items with Ramp Type Demand and Price Discount
Nasir Rabiu and Abubakar Musa
Keywords:Laplace Approximation, Markov Chain Monte Carlo Methods, Power Lomax model, Survival models.
Abstract
This study presents the inventory ordering policies of delayed/ non- instantaneous deteriorating items with Ramp Type demand and Price discount. The Ramp Type demand rate is very common when some brand of consumer goods is taken to the market and subsequently, their demand increases linearly at the beginning and then the market grows into a stable stage such that the demand becomes a constant up to the end of the inventory cycle. The assumption of price discount on selling price for the proposed model serves as a motivational factor to the wholesalers and retailers alike which in turn is instrumental to the significant increment in demand for the items put up for sales. In this situation a discount on selling price provides significant increment in demand and also maximize profit. The proposed model is developed incorporating both pre and post deteriorating discount on unit selling price and solutions of the model is provided analytically. A suitable iterative procedure is employed to solve the mathematical solutions in order to come up with numerical examples on the applications of the model. Sensitivity analysis would be carried out to bring to the fore, the effect of changes in the solutions to the model occasioned by slight changes in the system parameters.