Quantity discount for integrated supply chain model with preservation technology and back orders when demand is advertisement and stock dependent

Abstract

Due to uncertainty in economy, business players are examining different ways to survive and grow in competitive atmosphere. In this scenario use of effective promotional tool and co-ordination among players enhance supply chain profit. Proposed model is a sincere effort to study effect of quantity discount on integrated inventory system for constantly deteriorating items with fix life time. Proposed model uses advertisement and quantity discount to accelerate stock dependent demand and further offered preservation technology for controlling deterioration rate. Model is being validated numerically and sensitivity analysis for critical supply chain parameters was carried out. Results of proposed model can be used in the decision making process of the supply chains that are associated with supply of cosmetic, tinned food, drugs and other FMCGs