An EOQ model of homogeneous products while demand is salesmen’s initiatives and stock sensitive

AbstractThe author develops an inventory model to determine the retailer’s optimal order quantity for homogeneous products. It is assumed that the amount of display space is limited and the demand of the products is dependent on the display stock level, where a huge stock of one product has a negative effect on the other product. Also, the replenishment rate depends on the level of stock of the items. The objective of the model is to maximize the profit function, considering the effect of inflation and time value of money, by Pontryagin’s Maximal Principles. The stability analysis of the concerned dynamical system has been carried out analytically as well as numerically