AN INCENTIVE EOQ INVENTORY MODEL WITH PRICE DISCOUNT
European Journal of Molecular & Clinical Medicine,
2022, Volume 9, Issue 8, Pages 1394-1407
AbstractThis article looks at the problem of a supplier placing an order and providing a consumer a discount. This study's objective is to develop a decision-making procedure that will assist retailers in selecting between a regular order policy and a special order policy. The three possibilities in the created model are the optimal special order quantity is calculated with both regular and additional quantity benefits, while the optimal special order quantity is determined only with additional quantity benefits and the optimal order quantity is computed without taking advantage of price savings. This study finds the ideal solution, illustrates the theoretical conclusions using a variety of numerical examples, and then runs a sensitivity analysis of the ideal solution with respect to the key parameters.
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