Modeling an EOQ Inventory Model with Two-Period Deterioration-Based Threshold Time and Different Selling Prices: Optimization Challenges for Rapid Late-Life Deterioration

Key Points

• Optimization challenges arise in the EOQ model under variable selling prices and deterioration rates.
• Deterioration rates, especially during late-life phases, impact inventory management decisions significantly.
• Analysis employs a two-period approach, assessing the effects of threshold time on inventory levels and profits.
• Implications for business strategies suggest the need for adjustments in pricing to accommodate deteriorating inventory.