A FINITE HORIZON INVENTORY MODEL FOR DETERIORATING ITEMS WITH PROMOTIONAL EFFORT

Abstract

In this paper, we developed an inventory model for a finite time horizon in which need is dependent on promotional efforts. The major objective is to determine the optimal replenishment schedule such that total charges is reduced. It is determined that under these conditions, a solution of the model must exist and be unique. Next, algorithms are suggested to find the optimal solution, a numerical example is given to illustrate the model.