Functions of several variables analysis applied in inventory management

Abstract

This paper introduces a newly constructed model which enables a retailer to set an optimal price of goods under permissible delay in payments, and to determine the maximum term of payment. The model is based on the assumption of timedependent demand and has been developed for non-deteriorating goods. The paper further analyzes a situation in which the retailer sell all the goods in time, and a situation in which the deadline was not met. Theoretical results are demonstrated by an illustrative example.This paper introduces a newly constructed model which enables a retailer to set an optimal price of goods under permissible delay in payments, and to determine the maximum term of payment. The model is based on the assumption of timedependent demand and has been developed for non-deteriorating goods. The paper further analyzes a situation in which the retailer sell all the goods in time, and a situation in which the deadline was not met. Theoretical results are demonstrated by an illustrative example.