title: Pricing policy for declining demand using item preservation technology.
abstract: We have designed an inventory model for seasonal products in which deterioration can be controlled by item preservation technology investment. Demand for the product is considered price sensitive and decreases linearly. This study has shown that the profit is a concave function of optimal selling price, replenishment time and preservation cost parameter. We simultaneously determined the optimal selling price of the product, the replenishment cycle and the cost of item preservation technology. Additionally, this study has shown that there exists an optimal selling price and optimal preservation investment to maximize the profit for every business set-up. Finally, the model is illustrated by numerical examples and sensitive analysis of the optimal solution with respect to major parameters.
authors.affiliation: Department of Mathematics and Statistics, Dr Harisingh Gour Vishwavidyalaya (A Central University), Sagar, MP India.
authors.forename: Uttam Kumar
authors.initials: UK
authors.lastname: Khedlekar
authors.affiliation: Department of Mathematics and Statistics, Dr Harisingh Gour Vishwavidyalaya (A Central University), Sagar, MP India.
authors.forename: Diwakar
authors.initials: D
authors.lastname: Shukla
authors.affiliation: Department of Mathematics and Statistics, Dr Harisingh Gour Vishwavidyalaya (A Central University), Sagar, MP India.
authors.forename: Anubhav
authors.initials: A
authors.lastname: Namdeo
keywords: Declining demand; Deterioration; Inventory; Preservation technology; Pricing; Replenishment cycle