An EOQ model of homogeneous products while demand is salesmens initiatives and stock sensitive
The author develops an inventory model to determine the retailers optimal order quantity for homogeneous products. It is assumed that the amount of display space is limited and the demand of the products is dependent on the display stock level, where a huge stock of one product has a negative effect on the other product. Also, the replenishment rate depends on the level of stock of the items. The objective of the model is to maximize the profit function, considering the effect of inflation and time value of money, by Pontryagins Maximal Principles. The stability analysis of the concerned dynamical system has been carried out analytically as well as numerically.
salesmens initiatives stock sensitive stability control theory equilibrium effort