Dynamic Pricing Dependent Demand under Fuzzy Criterion for an Economic Order Quantity Model

To understand the retailer's optimal replenishment policy, the dynamic nature of demand is significant. When a new product is launched into the market the study regarding advertising and pricing policies has to be done in order to formulate the optimal replenishment policy. This paper develops an economic order quantity model where the nature of demand is dynamic and varies with time and it is under the influence of dynamic pricing and dynamic advertising condition. The parameters associated with the demand function will be consistent with the reality. The associated parameters have been taken as fuzzy variables. To understand the nature and behaviour of the model a numerical example with sensitivity analysis has also been performed.