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EOQ Pharmaceutical Inventory Model for Perishable Products with Pre and Post Discounted Selling Price and Time Dependent Cubic Demand


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1 Department of Mathematics, SAS, VIT University, Vellore, India
     

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In this article we propose pharmaceutical inventory model for perishable products with pre and post discounted selling price and time dependent cubic demand. Mostly the pharmaceutical company considered the constant rate of deterioration. In the majority of the earlier studies, the demand and holding cost has been considered to be constant function, which is not true in most of the practical situations as the manufacturing medicine/setting machine cost and patient record keeping costs or even cost of keeping the pharmaceutical items in the cold storage increases with time. In view of this, we develop a pharmaceutical inventory model in which the time dependent demand is cubic and holding cost is linear function of time. Also we introduce both pre and post-deterioration discounts on unit selling price which determine discount to be given on unit selling price during deterioration so as to maximize the total profit. Finally, numerical examples and sensitivity analysis are given for illustration of the model.

Keywords

Deteriorating Items, Pharmaceutical Products, Cubic Demand, Holding Cost, Discounted Selling Price.
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  • EOQ Pharmaceutical Inventory Model for Perishable Products with Pre and Post Discounted Selling Price and Time Dependent Cubic Demand

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Authors

G. Santhi
Department of Mathematics, SAS, VIT University, Vellore, India
K. Karthikeyan
Department of Mathematics, SAS, VIT University, Vellore, India

Abstract


In this article we propose pharmaceutical inventory model for perishable products with pre and post discounted selling price and time dependent cubic demand. Mostly the pharmaceutical company considered the constant rate of deterioration. In the majority of the earlier studies, the demand and holding cost has been considered to be constant function, which is not true in most of the practical situations as the manufacturing medicine/setting machine cost and patient record keeping costs or even cost of keeping the pharmaceutical items in the cold storage increases with time. In view of this, we develop a pharmaceutical inventory model in which the time dependent demand is cubic and holding cost is linear function of time. Also we introduce both pre and post-deterioration discounts on unit selling price which determine discount to be given on unit selling price during deterioration so as to maximize the total profit. Finally, numerical examples and sensitivity analysis are given for illustration of the model.

Keywords


Deteriorating Items, Pharmaceutical Products, Cubic Demand, Holding Cost, Discounted Selling Price.

References