Entropic Order Quantity (EnOQ) Model under Cash Discounts

Abstract

A new type of replenishment policy is suggested in an entropic order quantity model for a perishable product with two component demand under cash discounts particularly over a finite time horizon. To handle this multiplicity of objectives in a pragmatic approach, entropic ordering quantity model with discounted selling price during pre and post deterioration of perishable items to optimize its payoff is proposed. Furthermore, numerical experiments are conducted to evaluate the difference between the crisp EnOQ and EOQ models separately. The proposed paper reveals itself as a pragmatic alternative to other approaches based on two component demand function with very sound theoretical underpinnings but with few possibilities of actually being put into practice. The results indicate that this can become a good model and can be replicated by researchers in neighbourhood of its possible extensions.