Strategic Inventory Optimization: Analyzing Deteriorating Inventory with Price-Dependent Demand, Time-Variant Holding Costs, and Inflation Effects

This research presents a mathematical inventory model with demand dependent on selling price, highlighting its price sensitivity. Additionally, the holding cost is represented as a linear function of time in the model. The main objective is to maximize total profit by developing this framework. Through comprehensive analysis, we investigate the impact of parameter fluctuations on the model. A numerical example demonstrates sensitivity analysis, with graphs showing relationships among model parameters, economic order quantity, optimal timing, and total profit.