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Optimal Ordering policy for inventory system in demand declining market
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We are in such age where certain things are uncertain. Decision making is most powerful tool to avoid such uncertainty. In business if one wishes to grow must be aware of inventory management which helps in various walks of life. Inventory plays vital role in capital investment and must compete with other assets for firms' limited capital funds. Inventory model provides the system of logic which gives theoretical and applicable knowledge in the field of social sciences, humanities and management. This book is aimed to characterize different deterministic models in which demand factor is declining with respect to time and selling price. Further, effect of inflation, shortages and deterioration rate is considered. In extension, we consider collaborative scenario with single vendor single buyer and single vendor with multiple buyers when vendor offers credit period to buyers for settlement of accounts due against purchases and also offer quantity discount pricing strategy. A negotiation factor is also incorporate to share the profit between the vendor and buyer. The inventory model is derived for above stated conditions which are supported with numerical example and graphical summary.
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