Abstract: Companies or industries continuously seek innovation in their decision making processes to provide satisfactory service to their customers for survival in the globally competitive market. The objective of the present paper is to construct a decision making index for inventory management using distribution of price elasticity of demand for perishable products. The probability density function of the above distribution has been derived for the statistical application. The numerical value of the proposed index lies between 0 and 1. The magnitude of the index indicates the degree of utilization of inventory consisting of perishable items together with customer’s satisfaction. The suggested index will strike the balance between the sale of the product and the level of customer’s satisfaction. The application of the suggested decision making index has been illustrated with the help of numerical example.
Keywords: decision making index, price elasticity of demand, perishable items.
Title: Construction of a Decision Making Index for Inventory Management using Distribution of Price Elasticity of Demand for Perishable Products
Author: Ranjana Gupta, Meenakshi Srivastava
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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