Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Inventory Optimization with Quadratic Demand, Trade Credit & Shortages

Inventory Optimization with Quadratic Demand, Trade Credit & Shortages

Paperback

General Mathematics

ISBN10: 6630347560
ISBN13: 9786630347562
Publisher: Scholars' Press
Published: Aug 10 2026
Pages: 52
Weight: 0.18
Height: 0.12 Width: 6.00 Depth: 9.00
Language: English
This study derives an Economic Order Quantity (EOQ) model for inventory with delayed degradation, where demand depends on the selling price and a quadratic time factor. incorporating a partial backlogging mechanism, a trade credit policy, and a return policy that does not issue full refunds. The objective is to maximize the retailer's total profit by optimizing the selling price and replenishment schedule. Sensitivity analysis reveals that the pricing strategy is highly elastic; a 1% parameter shift triggers a 3.87% price change. Furthermore, consumer backordering patience is moderate, with only 44.95% of out-of-stock periods resulting in backorders, necessitating safety stock or shorter lead times to prevent lost sales. Despite this, total profit exhibits stable, positive scaling, increasing by 1.012% per 1% parameter shift, underscoring the model's overall financial robustness.

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