Combined Optimal Price and Optimal Inventory Ordering Policy with Income Elasticity

Autor:	R. M. Bhandari, P. K. Sharma
Rok vydání:	2000
Předmět:	Microeconomics Profit margin Economics Price elasticity of supply Economic order quantity Income elasticity of demand Time optimal Sale price Profit (economics) Inventory analysis
Zdroj:	Journal of King Abdulaziz University-Engineering Sciences. 12:103-116
ISSN:	1658-4260 1319-1047
Popis:	In the present paper, the effect of income elasticity on de- mand has been considered and the buyer's optimal special order quan- tity and optimal time has been determined, when supplier reduces sale price then buyer may offer a discount to push his sale to increase his profit margin. Income elasticity effect in inventory analysis has been introduced to obtain the gain equation to find the optimal special or- der quantity and profit associated with it when remnant inventory is zero. The profit and optimal order quantity are also derived when rem- nant inventory is finite. The cost of saving was also determined when due to inflation rise in the sale price is imminent. Finally optimal in- ventory ordering policy has been discussed to get maximum profit.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::de81b1a11425c55935027eed9a2322f1 https://doi.org/10.4197/eng.12-2.6 Zobrazit plný text záznamu