EOQ model with imperfect items and backorder with allowable proportionate discount using cross selling effects

The present paper aims to develop an economic order quantity (EOQ) model for the items of imperfect quality with a joint effect of proportionate discount, backorder, clustering with association rule mining and cross-selling effect. In this work, first, we computed the ordering policy with cross-selling effect. In case of imperfect quality items, cross-selling effects are clearly visible. Different data mining techniques are used to establish relationships among the items. We used clustering to find similar clusters in the inventory data base then the apriori algorithm to generate frequent item sets among the item sets in individual clusters. With cross-selling effect, the frequent items are taken as specific entities. Further, the EOQ of these entities is calculated along with the shortage level. Lastly, we considered a numerical example to validate the proposed work.