Purchase-Inventory Decision Models for Deteriorating Items with a Temporary Sale Price

Abstract

This paper examines a deterministic inventory model incorporating a temporary price discount, deteriorating items and time-value of money. The model is developed for two situations in which the replenishment takes places during a regularly scheduled replenishment period or it does not. It is also found the optimal total cost saving for a deteriorating item when a temporary price discount occurs. Numerical examples are presented to illustrate the proposed models.

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