Geodesic
Efficiency of Managing a Stochastic Inventory System in a Declining Market for Non-Instantaneous Deteriorating Items under Partial Backlogs
Yugoslav journal of operations research, Tome 35 (2025) no. 3, p. 633

Voir la notice de l'article provenant de la source eLibrary of Mathematical Institute of the Serbian Academy of Sciences and Arts

In a declining market, companies must adapt their strategies during the mature stage to maintain competitiveness. One of the effective approach to sustaining demand is through targeted promotional efforts, which can extend the products demand in the market. Additionally, implementing an appropriate pricing strategy is essential to ensure products are sold before its start deteriorate or the season ends. This paper explores the role of promotional efforts in shaping pricing policies for non-instantaneous deteriorating items in the declining demand scenario. In the model, we consider the demand as a function of both price and time, incorporating assumptions of partial backlogging for shortages, losts sales, fixed holding costs, and deterioration rate. Using these assumptions, we develop an inventory model that starts with a shortage and ends with zero inventory. The objective is to maximize expected profit per unit time by optimizing both the selling price and replenishment schedules. The innovation of this study lies in integrating promotional efforts with pricing strategies, specifically designed for deteriorating items in a declining market. We present a numerical example to demonstrate the model’s effectiveness and conduct a sensitivity analysis to examine its performance under varying conditions. Finally, we provide managerial insights and outline potential directions for future research.
Keywords: Stochastic demand, price and time declining demand, non-instantaneous Deterioration, promotional efforts, partial backlogging, lost sales 
Mamta Keswani; Vinita Dwivedi; Lalji Kumar; Bhupendra Kumar; Uttam Khedlekar. Efficiency of Managing a Stochastic Inventory System in a Declining Market for Non-Instantaneous Deteriorating Items under Partial Backlogs. Yugoslav journal of operations research, Tome 35 (2025) no. 3, p. 633 . http://geodesic.mathdoc.fr/item/YJOR_2025_35_3_a9/
@article{YJOR_2025_35_3_a9,
     author = {Mamta Keswani and Vinita Dwivedi and Lalji Kumar and Bhupendra Kumar and Uttam Khedlekar},
     title = {Efficiency of {Managing} a {Stochastic} {Inventory} {System} in a {Declining} {Market} for {Non-Instantaneous} {Deteriorating} {Items} under {Partial} {Backlogs}},
     journal = {Yugoslav journal of operations research},
     pages = {633 },
     year = {2025},
     volume = {35},
     number = {3},
     language = {en},
     url = {http://geodesic.mathdoc.fr/item/YJOR_2025_35_3_a9/}
}
TY  - JOUR
AU  - Mamta Keswani
AU  - Vinita Dwivedi
AU  - Lalji Kumar
AU  - Bhupendra Kumar
AU  - Uttam Khedlekar
TI  - Efficiency of Managing a Stochastic Inventory System in a Declining Market for Non-Instantaneous Deteriorating Items under Partial Backlogs
JO  - Yugoslav journal of operations research
PY  - 2025
SP  - 633 
VL  - 35
IS  - 3
UR  - http://geodesic.mathdoc.fr/item/YJOR_2025_35_3_a9/
LA  - en
ID  - YJOR_2025_35_3_a9
ER  - 
%0 Journal Article
%A Mamta Keswani
%A Vinita Dwivedi
%A Lalji Kumar
%A Bhupendra Kumar
%A Uttam Khedlekar
%T Efficiency of Managing a Stochastic Inventory System in a Declining Market for Non-Instantaneous Deteriorating Items under Partial Backlogs
%J Yugoslav journal of operations research
%D 2025
%P 633 
%V 35
%N 3
%U http://geodesic.mathdoc.fr/item/YJOR_2025_35_3_a9/
%G en
%F YJOR_2025_35_3_a9