On the EOQ model with inventory-level-dependent demand rate and random yield

This paper deals with an EOQ-type inventory problem where the demand rate is a function of the inventory level. It has been noted by marketing researchers and practitioners that an increase in a product's shelf space usually has a positive impact on the sales of the product. In such a case, the demand rate is no longer a constant, but it depends on the amount of on-hand inventory. Our objective is to develop a model that can accommodate the …