An EOQ model for deteriorating items with selling price dependent demand rate with learning effect

Abstract

In this paper an operating system for non-instantaneous deteriorating items having price sensitive demand has been modeled. The learning effect on different associated cost has also been discussed. Many times it is observed that by repeating the same procedure, the vendor can reduce the associated cost. The objective of the model is to optimize the vendor’s total cost of the system and to find out the optimal ordering quantity and shortage period. In this paper we investigated the optimal policy and provide a numerical example based on our analysis. Sensitivity analysis with respect to various system parameters are also given to illustrate the model.