Published Paper Details:

This paper is concerned with an inventory model with instantaneous stock replenishment and stock-dependent consumption rate. In this paper we derived total cost in which demand rate is constant and tried to change the demand of producer as the change of demand of consumer. Naturally this could not take care of stock dependent demand rate which is depending on replenishment size i. e. replenishment should continuously come so that shortages do not take place. Gupta and Vrat suggested an EOQ model through cost minimization technique to take care of stock-dependent demand rate. They substituted the expression for variable demand rate in the total cost per unit time derived under the assumption of constant demand, and Mandal and Phaujdar suggested an EOQ model through profit maximization criteria considering the demand rate depending upon the current stock level to yield the optimal solution, which is more realistic. They assumed a linear dependence of the demand rate on the current stock level. In a current paper, profit maximization criteria is used for the producer to earn more profit. In this paper an EOQ model is established in the case where the replenishment of the stock is instantaneous, flat discount offered and shortages are not allowed and the demand rate depends upon the current stock level. Profit maximization criteria are employed to yield the maximum profit per time of the system.