A Price-Dependent Demand Model in the Single Period Inventory System with Price Adjustment
Joint Authors
Forghani, Kamran
Rafiee, Mehdi
Mirzazadeh, Abolfazl
Source
Journal of Industrial Engineering
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-12-30
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Engineering Sciences and Information Technology
Science
Abstract EN
The previous efforts toward single period inventory problem with price-dependent demand only investigate the optimal order quantity to minimize the total inventory costs; however, there is no method in the literature to avoid unwanted costs due to the deviation between the actual demand and the previously estimated demand.
To fill this gap, the present paper supposes that stochastic demand rate with normal distribution is sensitive to the selling price; this means that increasing the selling price would decrease the demand rate and vice versa.
After monitoring the consumption trend within a section of the period, a new selling price is implemented to change the demand rate and reduce the shortage or salvage costs at the end of the period.
Three functions were suggested to represent the demand rate as a function of selling price, and the numerical analysis was implemented to solve the proposed problem.
Finally, an illustrative numerical example was solved for different configurations in order to show the advantages of the proposed model.
The results revealed that there is a significant improvement in the system costs when price revision is considered.
American Psychological Association (APA)
Forghani, Kamran& Mirzazadeh, Abolfazl& Rafiee, Mehdi. 2012. A Price-Dependent Demand Model in the Single Period Inventory System with Price Adjustment. Journal of Industrial Engineering،Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-483504
Modern Language Association (MLA)
Forghani, Kamran…[et al.]. A Price-Dependent Demand Model in the Single Period Inventory System with Price Adjustment. Journal of Industrial Engineering No. 2013 (2013), pp.1-9.
https://search.emarefa.net/detail/BIM-483504
American Medical Association (AMA)
Forghani, Kamran& Mirzazadeh, Abolfazl& Rafiee, Mehdi. A Price-Dependent Demand Model in the Single Period Inventory System with Price Adjustment. Journal of Industrial Engineering. 2012. Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-483504
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-483504