AN INVENTORY MODEL FOR COORDINATING ORDERING, PRICING AND ADVERTISEMENT POLICY FOR AN ADVANCE SALES SYSTE

  • K. K. AGGARWAL Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi,India
  • Shuja AHMED Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi,India
  • Fehmina MALIK IEOR, IIT Bombay, Powai, Mumbai, India

Abstract

The paper studies a coordinated stock replenishment, pricing, and advertisement problem for an inventory with advance booking system. A single period planning
horizon is considered consisting of both advance sales and spot sales periods. The discount is offered for booking the product in advance, which is given to the customers when the replenishment arrives. The product demand is the price and advertising expenditure sensitive. This paper aims to nd the optimal ordering quantity, selling price, and advertising expenditure of the product, which maximizes the total prot. The solution algorithm is suggested for computing the optimal solution, which is illustrated numerically.

Published
2020-06-22
How to Cite
AGGARWAL, K. K.; AHMED, Shuja; MALIK, Fehmina. AN INVENTORY MODEL FOR COORDINATING ORDERING, PRICING AND ADVERTISEMENT POLICY FOR AN ADVANCE SALES SYSTE. Yugoslav Journal of Operations Research, [S.l.], v. 30, n. 3, p. 325-338, june 2020. ISSN 2334-6043. Available at: <https://yujor.fon.bg.ac.rs/index.php/yujor/article/view/865>. Date accessed: 22 nov. 2024.
Citation Formats
Issue
Vol 30 No 3 (2020)
Section
Articles
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