A deterministic model for deteriorating items with displayed inventory level dependent demand rate incorporating marketing decisions with transportation cost

This paper deals with an inventory model, which considers the impact of marketing strategies such as pricing and advertising as well as the displayed inventory level on the demand rate of the system. In addition, the demand rate during the stock-out period differs from that during the stock-in period by a function varied on the waiting time up to the beginning of the next cycle. Shortage are allowed and partially backlogged. Here, the deterioration rate is assumed to follow the Weibull distribution. Considering all these factors with others, different scenarios of the system are investigated. To obtain the solutions of these cases and to illustrate the model, an example is considered. Finally, to study the effects of changes of different parameters of the system, sensitivity analyses have been carried out with respect to the different parameters of the system.