REVENUE GENERATING FUNCTION FOR NON-REGULAR FIXED LIFETIME INVENTORY SYSTEM: A CASE STUDY OF RADIO/TELEVISION AIRTIMES

ABSTRACT

The fixed lifetime inventory system is a type inventory system in which items in inventory becomes obsolete at the end of their useful life and re discarded. The fixed lifetime inventory system is classified into regular fixed lifetime inventory system and non-regular fixed lifetime inventory system (Izevbizua & Apanapudor, 2019). In the course of this work, we would refer to this kind of inventory system as a regular system of fixed lifetime inventory and introduce the concept of non-regular system of fixed lifetime inventory. A non-regular fixed time inventory system is one in which outdated inventory items are not discarded, in fact items that outdates in one period become useful at the start of the following period. Examples are; airtime on radio/television, hotel rooms, seat on the train, seat on the airplane, space(s) on the daily newspaper and so on. In this thesis, we focus on airtime on radio and television stations as non-regular fixed lifetime’s inventory. The airtimes in radio and television stations form a special type of nonregular system of fixed lifetime inventory. The total revenue generating function of radio/television airtime was derived. An application of the model was used to analyze the revenue generated from the prime time, fixed time and normal time adverts of radio/television stations in a day.