Inventory Decision Makings in Discount Pricing Policy for Imperfect Production System

Pricing Policy for Imperfect Production System

Abstract

This article deals with an imperfect production system in a enviornment of price discount with the partially backlogging at the beginning of the cycle. Here, demand is taken as price sensitive as a negative power function of selling price and discount. All imperfect products are reworked after continuous production process and are taken as similar to perfect products. The main object is to nd the optimal excepted average prot, optimal selling price, discount rate, backorder level and lot-size. Sensitivity analysis is carried out with key parameters, and have examined to check the feasibility
of the model. A numerical example is considered to validate the model and also illustrated graphically.