Proceedings of the 2nd International Conference on Sustainable Business Practices and Innovative Models (ICSBPIM-2025)

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Inventory Models Incorporating Demand as a Function of Advertising Cost and Pricing Discount

Authors
Shiv Kumar Singh Pundhir1, *, Seemant Kumar Yadav2, Anand Kumar Gupta3
1School of Business and Management, Christ University, Bengaluru, Karnataka, India
2Institute of Business and Management, GLA University, Mathura, Uttar Pradesh, India
3Faculty of Commerce and Management, United University, Prayagraj, Uttar Pradesh, India
*Corresponding author. Email: shiv.pundhir@christuniversity.in
Corresponding Author
Shiv Kumar Singh Pundhir
Available Online 4 November 2025.
DOI
10.2991/978-94-6463-872-1_75How to use a DOI?
Keywords
Manufacturer; Retailer; Price Discount; Marketing cost; Shortage
Abstract

Effective supply chain management relies on strong cooperation between manufacturers and retailers. Both can enhance their profits by boosting market demand through offering discounts and increasing marketing expenditure. This research aims to develop inventory models considering annual demand dependent on the discount given by the manufacturer to the customer on the maximum retailer price and the advertising expenditure of the retailer. We develop inventory models in both non-cooperative and cooperative environments to optimize profits. Inventory level and discounts are considered decision variables for the manufacturer, while EOQ and marketing expenditure are the decision variables for the retailer. Solution process and sensitivity analysis are performed using numerical examples. Concavity of the profit functions with respect to all the decision variables is discussed using analytical methods. Results show that annual market, EOQ, inventory level, demand, and profit increase in cooperative environments. A non-cooperative environment is favourable for the manufacturer.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Conference on Sustainable Business Practices and Innovative Models (ICSBPIM-2025)
Series
Advances in Economics, Business and Management Research
Publication Date
4 November 2025
ISBN
978-94-6463-872-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-872-1_75How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Shiv Kumar Singh Pundhir
AU  - Seemant Kumar Yadav
AU  - Anand Kumar Gupta
PY  - 2025
DA  - 2025/11/04
TI  - Inventory Models Incorporating Demand as a Function of Advertising Cost and Pricing Discount
BT  - Proceedings of the 2nd International Conference on Sustainable Business Practices and Innovative Models (ICSBPIM-2025)
PB  - Atlantis Press
SP  - 1247
EP  - 1269
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-872-1_75
DO  - 10.2991/978-94-6463-872-1_75
ID  - Pundhir2025
ER  -