A Price Discount Scheme for Non-Instantaneous Inventory System with Shortage

Optimal pricing and replacement policies are the two significant factors in a deteriorating inventory model. These papers address an EOQ model for a non-instantaneous inventory system in a three-stage inventory level. Price-sensitive market demand has been assumed to predict the uncertain market. A price discount policy has been analyzed during the periods of deterioration. In addition, a shortage in the retailer's inventory has been considered with a partial backlogging rate. The objective of this research is to find the optimal product pricing, inventory cycle length, and inventory cycle length so that the optimal profit will be maximized. Finally, a numerical illustration is presented to validate the proposed model, and sensitivity analyses are carried out to illustrate the effectiveness of the key parameters.