Department of Mathematics, Holy cross college (Autonomous), Tiruchirappalli-620–002, India
Online published on 25 December, 2015.
In a modern Business world technologies play an important role. Most of the companies use the technologies in their business and achieve their goal. One of the most important technologies in the business field is advertising. Through advertising many firms execute their different types of pricing strategies, to attract the buying behavior of the customers and to differentiate themselves from their competitors. With the help of advertising techniques vendor share their demand and inventory information with their customers to improve the coordination and reduce the lead times. Now we introduce the advertisement cost in the optimizing inventory and sales decisions in a two stage supply chain with imperfect production and backorders and maximize the optimization. Numerical example is provided to illustrate the advertisement cost in the expected total profit of the system.
Integrated inventory, Pricing, Price sensitive demand, Lead time, Advertising