EOQ inventory model for supplier – retailer with price reduction and shortage

This study examines how a supplier's temporary price reduction changes a retailer's restocking strategy when there is a shortage. When selecting whether to implement a regular or special order procedure amid a transitory deals season, retailers construct a decision-making process. The model is distinctive in that it considers shortages, unlike past attempts that did not. The best special arranges amount is chosen by minimizing ad up to fetched of special and ordinary orders. This is demonstrated by a number of numerical examples and sensitivity testing of the best answer.