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Optimal pricing and ordering policy for three parameter Weibull deterioration under trade credit. (English) Zbl 1235.90019
Summary: This paper deals with development of an optimal pricing and ordering policy for items with three parameter Weibull deterioration where the supplier offers a delay in payments. Here the demand is considered to decrease with time. Optimal selling price and the ordering quantity have been derived in the end which maximizes the retailer’s profit. Optimal cycle time, selling price, ordering quantity and total profit per unit time for this model have been derived and the results are illustrated with the help of numerical examples and a sensitivity analysis at the end.

MSC:
90B05 Inventory, storage, reservoirs
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