OPTIMAL MULTI-DISCOUNT SELLING PRICES SCHEDULE FOR DETERIORATING PRODUCT

Abstract. This paper investigates optimal multi discount price and order quantity for deteriorating product. We initially consider a time dependent demand function with two scenarios including positive exponential for the rst interval and negative exponential for the second one, due to the obsolescent characteristic, without any exogenous factor. Then, we study the eect of changing selling price as an exogenous factor causing increase in demand. Finally, optimization model is formulated and the closed form solutions of the optimal prices are gained.