Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand

This paper focuses on an economic order quantity model for deteriorating items with time and advertisement dependent demand under the effect of inflation. The items in inventory deteriorate at a constant rate. The expenses on advertisement depend on the effort of the firm. The objective of the study is to maximize profit function with respect to initial lot size and investment in advertisement. The concavity of the profit function is shown graphically with respect to the decision variable. Numerical example is provided to illustrate the model. Further, sensitivity analysis is carried out to study the effects of different parameters.