A DETERIORATING INVENTORY MODEL WITH A TEMPORARY PRICE DISCOUNT

Inventory models considering a temporary price discount have recently become an active area of research. In this study, an extension is made to consider the fact that some commodities may deteriorate during sto rage. The models also incorporate three additional assumptions that ha ve been neglected by researchers. Two models for the exponentially det eriorating items with a temporary price discount are developed for a r egular and non-regular inventory replenishment time. Our goal in this research is to maximize the total cost saving during the temporary pri ce discount order cycle. A numerical example is provided to illustrate the theory.