In real estate businesses, the price fluctuates due to the variation of a number of factors such as brokerage, inflation and time value of money etc. In this article we consider an stochastic EPLS (economic production lot size) model with price sensitive demand when the price is random in character. The model investigates a self manufacturing/finite replenishment rate with profit maximization problem for a single item over finite time horizon, allowing shortages. A general model is built up by taking production cost, holding cost, shortage cost and selling price into consideration. The general model is analyzed by considering three different distributions of selling price: uniform distribution, exponential distribution and linear distribution for showing the flexibility and utility of the model. Numerical examples are illustrated to test the proposed model. Sensitivity analysis is carried out. A comparative study between these three distributions has also been done. © 2010 Taylor & Francis Group, LLC.

M D ROY

S S SANA

K CHAUDHURI

University of Calcutta (informally known as Calcutta University or CU) is a collegiate public state university located in Kolkata, West Bengal, India.&nbsp;Within India it is recognized as a &quot;Five-Star University&quot; and accredited &quot;A&quot; Grade by National Assessment and Accreditation Council.

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The University of Calcutta has secured the Fifth position among the Universities of India in the prestigious &quot;Indian University Ranking 2019&quot; list, released by the NIRF of the Ministry of Human Resource Development, Government of India.

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It was established on 24 January 1857, and was one of the first institutions in Asia to be established as a multidisciplinary and Western-style university. Its alumni and faculty include several heads of state, heads of government, social reformers, prominent artists, only academy award winner and Dirac medal winner in India, many Fellows of the Royal Society and five Nobel laureates as of 2019 which is highest in South Asia.

University Of Calcutta

A stochastic EPLS model with random price sensitive demand

International Journal of Management Science and Engineering Management

The objective of this paper is to minimize the expected total cost by consolidating a number of batches of imperfect quality products of different cycles for a single shipment and maximize the expected average profit function. Shortages are allowed at the end of each ordering cycle and are partially backlogged. The stock-out period is assumed to be exponentially distributed. The ordered lot size and cycle length of all the ordering cycles of a shipping cycle are considered to be equal. The model is analyzed for both infinite and finite planning horizons. The percentage of defective items in a lot is assumed to follow a uniform distribution. All the fractions of imperfect quality items in the ordering cycles of each shipping phase are assumed to be independent and identically distributed. After the completion of a screening process, one portion of the perfect quality products is used to serve partial backlogging at a cost per unit and the rest of the stock is used to adjust the demand. Calculus method is used to obtain the optimal number of order cycles for shipment. Optimal shortage period, optimal lot size and expected average profit for the model are developed on both of the finite and infinite time horizons. A comparison between the our models and Maddah and Jaber's (2008) [1] model is done through numerical studies which are also used to illustrate the models graphically. © 2011 Elsevier Ltd.

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Mathematical and Computer Modelling

An optimal shipment strategy for imperfect items in a stock-out situation

Applied Mathematics and Computation

Optimal price and lot size determination for a perishable product under conditions of finite production, partial backordering and lost sale

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Editorial Board & Subscription Info

Applied Mathematical Modelling

Coordinating a supply chain with effort and price dependent stochastic demand

International Journal of Production Economics

Supplier selection problem for a single manufacturing unit under stochastic demand

Joint optimization on pricing, promotion and inventory control with stochastic demand

A stochastic epls model with random price sensitive demand

Journal	International Journal of Management Science and Engineering Management
Publisher	-
ISSN	1750-9653