EOQ models for deteriorating items with two levels of market

This thesis proposes EOQ models for deteriorating items with time–dependent demand, as well as price–dependent demand, for both partial and complete backlogging scenarios. For each type of demand, three different models are developed: (1) items are first sold at the high–end market at a higher price; and then, at a given time, the leftover inventory is transported to the low–end market and sold at a lower price; (2) items are sold only at the high–end market. However, discount on the selling price is offered after a certain time; and (3) items are sold only at the high–end market without any price discount. The proposed models are solved to determine the optimal total profit, optimal order quantity, time at which inventory becomes zero, and optimal backlogged quantity. Finally, numerical examples and a sensitivity analysis are given to illustrate the proposed models.