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| Parameters | Description |
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| Salvage cost of deteriorated item (currency symbol/unit) |
| Purchase cost (currency symbol/unit) |
| Deterioration cost (currency symbol/unit) |
| Holding cost (currency symbol/unit/unit of time) |
| Holding cost (currency symbol/unit/unit of time2) |
| Holding cost (currency symbol/unit/unit of time3) |
| Ordering cost (currency symbol/per cycle) |
| Shelf-life of the item upon which the remaining amount, if any, is withdrawn immediately from the storage (unit of time) |
| Maximum shelf space (units) |
| Salvage coefficient |
| Inventory deterioration rate |
| Sensitivity parameter to the current level of stock |
| Scale parameter for the part of price-dependent demand |
| Sensitivity parameter for the part of price-dependent demand |
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| Functions |
| Price-dependent demand for the item, which can be linear, isoelastic, exponential, logit, logarithmic, or polynomial function (units/unit of time) |
| Stock level at time (units) |
| Price-, stock-, and age-dependent demand for the item at time (units/unit of time) |
| Quadratic holding cost function |
| Total profit per cycle (currency symbol/unit) |
| Total profit per unit of time (currency symbol/unit of time) |
| Age of the stock, which is the time passed since the last replenishment (unit of time) |
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| Decision variables |
| Product selling price (currency symbol/unit) |
| Replenishment cycle length (unit of time) |
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| Dependent decision variable |
| Order quantity (units) |
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