Prices and order quantities of substitutable products in an EPQ model over different uncertain finite budget constraints

Article type: Research Article

Authors: Das, Rakesh L.^{a; *} | Jana, Ranjan Kumar^a | De, Manoranjan^b | Maiti, Manoranjan^b

Affiliations: [a] Department of Applied Mathematics and Humanities, Sardar Vallabhbhai National Institute of Technology, Surat, Gujarat, India | [b] Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, West Bengal, India

Correspondence: [*] Corresponding author. Rakesh L. Das, Department of Applied Mathematics and Humanities, Sardar Vallabhbhai National Institute of Technology, Surat-395007, Gujarat, India. Tel.: +91 90331 31798; E-mail: rakeshdas.svnit@gmail.com.

Abstract: In current scenario, big departmental stores used to work more efficiently with the items that can be substituted either with optimum order quantities or selling prices of the products. In this paper, the models are determined as the total profit maximization problem with uncertain finite budget fuzzy constraints thereby solved through a gradient based search technique- GRG (Generalized Reduced Gradient) method. The prices and optimal order quantities of substitutable items are obtained so that total profit for store owner is maximum.

Keywords: Selling price, optimal order quantities, substitution, inventory problems, profit, EPQ model, finite budget constraint

DOI: 10.3233/JIFS-161499

Journal: Journal of Intelligent & Fuzzy Systems, vol. 33, no. 1, pp. 229-244, 2017