PRESERVATION TECHNOLOGY INVESTMENT FOR AN INVENTORY SYSTEM WITH VARIABLE DETERIORATION RATE UNDER EXPIRATION DATES AND PRICE SENSITIVE DEMAND

Abstract

The proposed study addresses a supplier-retailer inventory problem by considering the detrimental impacts of deterioration. The inventory produced by the supplier
undergoes a machine-shift and hence produces non-conforming items. The retailer uses the preservation technology so as to deal with deteriorating items ingeniously where the demand is price-sensitive at the buyer's end. Two models are developed through different means viz. Integrated and Bi-level approach and are then compared so as to impart some constructive organizational insights. Sensitivity analysis with a numerical example has been illustrated so as to establish the validity and strength of the developed models.