This paper is to formulate and solve the inventory system with non-instantaneous deteriorating item and price-sensitive demand, and plans the operations strategy for maximizing the total system-wide profits. The purpose of this study is to determine the optimal selling price of product and the replenishment cycle. We provide the necessary conditions to find an optimal solution for the inventory model. Finally, numerical examples are provided to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect major parameters is carried out. This paper is to formulate and solve the inventory system with non-instantaneous deteriorating item and price-sensitive demand, and plans the operations strategy for maximizing the total system-wide profits. The purpose of this study is to determine the optimal selling price of product and the replenishment cycle. We provide the necessary conditions to find an optimal solution for the inventory model. Finally, numerical examples are provided to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect major parameters is carried out.
