In a declining market for goods, we optimize the net profit in business when inventory management allows change in the selling prices n times over time horizon. We are computing optimal number of changes in prices, respective optimal prices, and optimal profit in each of the cycle for a deteriorating product. This paper theoretically proves that for any business setup there exists an optimal number of price settings for obtaining maximum profit. Theoretical results are supported by numerical examples for different setups (data set) and it is found that for every setup the dynamic pricing policy outperforms the static pricing policy. In our model, the deterioration factor has been taken into consideration. The deteriorated units are determined by the recurrence method. Also we studied the effect of different parameters on optimal policy with simulation. For managerial purposes, we have provided some "suggested intervals" for choosing parameters depending upon initial demand, which help to predict the best prices and arrival of customers (demand).

This paper presents an inventory model considering the demand as a parametric dependent linear function of time and price both. The coefficient of time-parameter and coefficient of price-parameter are examined simultaneously and proved that time is dominating variable over price in terms of earning more profit. It is also proved that deterioration of item in the inventory is one of the most sensitive parameter to look into besides many others. The robustness of the suggested model is examined using variations in the input parameters and ranges are specified on which the model is robust on most of occasions and profit is optimal. Two kinds of doubly-demand function strategies are examined and mutually compared in view of the two different cases. Second strategy found better than first. Holding cost is treated as a variable. Theoretical results are supported by numerical based simulation study with robustness. Some recommendations are given at the end for the inventory managers and also open problems are discussed for researchers. This model is more realistic than considered by earlier author.

In this paper, we have modeled a business which starts with shortage of deteriorating items. After a duration, managers have freedom to order the stock of assurance of committed customers. There are many products that follow logarithmic demand pattern, so in this paper we incorporate it with the shortage of items at the beginning. A new model is developed to obtain the optimal solution for such type of market situation and have obtained some valuable results. Numerical examples and simulation study is appended along with managerial insights