Generally, inventory control policies for deteriorating items are very sensitive to different marketing policies especially in chemical, food and pharmaceutical industries. Realizing the importance of such inventory policies in practice, an integrated production-inventory-marketing model is developed for determining the economic production quantity (EPQ) and economic order quantity (EOQ) for raw materials in a multi-stage production system. This model considers the effect of different marketing policies such as the price per unit product and the advertisement frequency on the demand of a perishable item. A search method is employed to determine the values of EPQ and EOQ which would result in the maximum total net profit.
All Science Journal Classification (ASJC) codes
- General Computer Science
- General Engineering