An EOQ Model for Deteriorating Item with Preservation Technology, Linear Holding Cost, and Multi-Variate Demand

Nowadays, customer’s purchasing behaviour gradually changes. They are more shifting towards green products keeping the selling price of the products in mind. Further, sales team efforts attract the customers also. In the current study, an EOQ model is developed considering selling price, green level, and sales team effort sensitive demand. The holding cost is considered as linear function of time. Ordering cost and purchasing cost depends on the greenness level of the products. Preservation technology is adopted to reduce the economic loss due to deterioration. Optimal values of greenness level and ordering quantity are obtained so that total profit of the system is maximum. Numerical analysis is carried out and sensitivity is performed with respect to key parameters. Numerically, it is observed that greenness level has positive impact on the environment as well as on the profit of the system.