Science and Education Publishing Journal of Business and Management Sciences 2333-4533 2 3A 2014 08 26 The Impact of Promotional Activities and Inflationary Trends on a Deteriorated Inventory Model Allowing Delay in Payment 1 16 EN Bhanupriya Dash Monalisha Pattnaik Department of Business Administration, Utkal University, Bhubaneswar, India Hadibandhu Pattnaik JBMS201423A1 10.12691/jbms-2-3A-1 2014 08 22 2014 08 25 2014 08 26 A deteriorating inventory model allowing delay in payment, promotional activities and inflation is developed. This arises as a result of the time gap in between the time of estimation and the starting time of economic order quantity (EOQ) system and promotional activities with a permissible delay in payment will affect the inventory total cost. Moreover, the political volatility of a country leads to a much more unstable situation in the present world economy. So a change in inflation takes place. The objective of this inventory model is to minimize the total inventory cost allowing promotional activities and delay in payment for deteriorating items under inflation with shortages. The numerical analysis shows that an appropriate policy can be benefited the retailer for deteriorating items. Finally, sensitivity analysis of optimal solution with respect to the major parameters are also studied.