LOT SIZING AND PRICING DECISION FOR ITEMS FOLLOWING PRICE SENSITIVE QUADRATIC DEMAND UNDER VARIOUS PAYMENT SCHEMES

  • Poonam Prakash Mishra Pandit Deendayal Energy University
  • Azharuddin SHAIKH SHAIKH
  • Isha TALATI

Abstract

Three types of payments confront in business dealings viz. advance, cash
and credit. A cash payment is ubiquitously practiced, while a credit payment scheme
escalates sales and advance payment technique is implemented to avoid cancellation of
orders. These are recognized as advance-cash-credit (ACC) payment scheme which is
conventional in business transactions. By implicating ACC the aim is to determine
optimal pricing and ordering policies. Inventory items observes quadratic demand being
sensitive to unit selling price. Promising concavity of the prot function for both selling
price and cycle time is posed numerically. Managerial insights are revealed as a concluding
note.

Published
May 8, 2022
How to Cite
MISHRA, Poonam Prakash; SHAIKH, Azharuddin SHAIKH; TALATI, Isha. LOT SIZING AND PRICING DECISION FOR ITEMS FOLLOWING PRICE SENSITIVE QUADRATIC DEMAND UNDER VARIOUS PAYMENT SCHEMES. Yugoslav Journal of Operations Research, [S.l.], may 2022. ISSN 2334-6043. Available at: <https://yujor.fon.bg.ac.rs/index.php/yujor/article/view/1015>. Date accessed: 04 dec. 2022.
Section
Research Articles