INVENTORY MODEL FOR DETERIORATING ITEMS WITH REVENUE SHARING ON PRESERVATION TECHNOLOGY INVESTMENT UNDER PRICE SENSITIVE STOCK DEPENDENT DEMAND

Abstract

<span>The objective of this research is to tackle the emerging problem of jointly determining the</span><br /><span>optimal retail price, the replenishment cycle, and the cost of preservation technology investment from an integrated perspective among the supplier and the manufacturer. This paper deals an integrated single-manufacturer single-retailer supply chain model for deteriorating items under revenue sharing on preservation technology investment. The proposed model is developed under the contract that the manufacturer offers the retailer for a percentage of revenue sharing on preservation technology investment. The market demand is assumed to be dependent on both the on-hand stock and price, and the manufacturer & the retailer are in an agreement of lot-for-lot policy. Numerical & graphical analysis is given to illustrate the model.</span>