Consider a perishable item with a unit acquisition cost v, a fixed ordering cost A, a known demand rate D, and a carrying charge r. The perishability is reflected in the following behavior of the selling price p as a function of the age t of a unit:

p(t) = p − bt 0 < t < SL where b = positive constant SL = shelf life Any units of age SL are disposed of at a unit value of g, which is less than both v and p − b(SL). Set up a decision rule for finding the profit maximizing value of the order quantity Q.? Lp852