An Inventory Model with Deteriorating Items having Price Dependent Demand and Time Dependent Holding Cost under Influence of Inflation

Abstract

This study presents a mathematical inventory model where the demand is considered a function of the selling price, indicating its dependence on the selling price. Also, the holding cost is assumed to be a linear function of time. The main objective is to determine the maximum total profit through the establishment of this model. To achieve this, we analyze the effects of varying parameter values used in our model. To illustrate the sensitivity analysis, a numerical example is employed. Graphs are generated to depict the relationships between the model parameters, the economic order quantity (EOQ), the optimal time, and the total profit.