Maximizing profits with optimal promotion for deteriorating items boosts retailer success
The article introduces a new model for managing inventory of items that deteriorate over time, leading to loss of units. By considering the cost of lost units due to deterioration, the researchers aim to find the best way to maximize profit. They analyze the impact of promotional efforts on profit and show that a well-planned promotion strategy can benefit retailers, especially for items that deteriorate. The study suggests that making clear decisions with promotional costs in mind can lead to higher profits.