Abstract
This paper proposes an optimal order quantity model for special display goods at a retail store, where special display goods refer to merchandise which are heaped up in end displays or in special areas. It is empirically known that the special display goods tend to sell well if their quantity displayed is large, but do not when it becomes small. This study models such a behavior by an differential equation and formulates the total profit per unit time. The optimal lot size as well as the optimal inventory level to order are then discussed. Numerial examples are also presented to illustrate the proposed model.
