Optimal Ordering and Pricing Policies For Deteriorating Inventory in Demand Declining Market and Time Dependent Partial Backlogging

In this paper, a deterministic inventory model for deteriorating items when demand is price depen­ dent. The shortages are allowed and unsatisfied demand is partially backlogged depending on the waiting time. The optimal ordering and pricing schedule is derived by maximizing the profit. It is established that the total profit per unit time is concave. Numerical example is used to study the behavior of critical parameters and total profit.