Economic Ordering Quantity Model with Linear Demand Rate under Network Trial Mode

Network trial mode is a new marketing method that combines traditional trial mode and internet technology. Customers can place an order for a trial product, and try it for a period of time before deciding whether to buy the product. Network trial mode helps reduce the return loss of online retailers. This study found that the previous literature assumed a constant demand rate to construct an EOQ model under the network trial mode, but the real-world demand rate is not constant. This study assumed a linear demand rate to modified the EOQ model under the network trial mode, and genetic algorithm was used to solved this model. A case illustrates the application of this modified EOQ model, and a sensitivity analysis shows the most critical model parameters for this case.