A polynomial of degree five representing the selling price of an inventory of deteriorating items with a linear degradation rate, constant holding cost, and demand-dependent selling price
DOI:
https://doi.org/10.53573/rhimrj.2023.v10n07.001Keywords:
Inventory Control, Demand, Polynomial Function, Holding Cost, Selling PriceAbstract
The study suggests a deterministic inventory model as opposed to a probabilistic one. With just odd powers considered, the model's demand rate is a degree five polynomial of the selling price. The keeping expense is assumed to stay constant. Time has an impact on how quickly things degrade. The backlog and shortages are both acceptable. The inventory model used a single article inventory. It is assumed that there is no lead time. In this study, the differential equation's solution was used to determine the best values. The model is numerically validated, and in a maple application, convexity is displayed as a two-dimensional graph.
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