Search

In the world of limited resources, recovery of used products for reselling or recycling is a critical issue from the economic and environmental point of view. In this paper, we have assumed that a retailer sells the new product to customers as well as collects and sells the used products. We adopt a price dependent quadratic demand function, and the return of used product as a price and time-dependent linear function. The proposed problem is formulated as a profit maximization problem for the retailer. The objective is to find the optimal selling price, the optimal ordering quantity for the new product, and the optimal quantity of used product simultaneously such that the retailers total profit is maximized. The model is validated by a numerical example and sensitivity analysis is performed for the key parameters.

In this article, we establish an inventory model for deteriorating items with a return period and price-dependent demand for the retailer who offers two-phase advance sales to his/her customers. The replenishment cycle is divided into two sales periods: one is the two-phase advance sales period, and the other is the spot sales period. Before customers with reservations receive their orders, they may cancel the order. On the other hand, when the customers receive the order, they can make a request to return products for any reason during the return period. We provide an easy-to-use method to obtain the optimal selling price and the optimal sales period to achieve the retailer's maximum total profit. Finally, we give numerical examples to illustrate the solution procedure. We perform a sensitivity analysis to investigate the effect of changes of some main parameter values on the optimal solution and provide an economic interpretation. [ABSTRACT FROM AUTHOR]

Abstract In this research, an integrated inventory model for non-instantaneous deteriorating items is analyzed when demand is sensitive to changes in price. The price used in this research is a time-dependent function of the initial selling price and the discount rate. To control the deterioration rate of items at the storage facility, investment in preservation technology is incorporated. To provide a general framework to the model, an arbitrary holding cost rate is used. Toward the end of the paper, a numerical case is given to approve the model and the impacts of the key parameters of the model are studied by sensitivity analysis to deduce managerial insights.

If an exporter or a wholesaler sells goods at a fixed price to be paid in the currency of the seller's country, then the purchase price of the importer depends upon the prevailing exchange rate of their respective currencies. Ideally, in a floating exchange rate system, the purchase price has to change according to shifts in the exchange rate. In such a scenario the entire exchange rate risk is borne by the importer/buyer. However, in international trade, it is customary for the parties to enter into a risk-sharing agreement, under which the buyer does not pay the seller on the basis of the prevailing exchange rate, but pays a mutually agreed upon price that falls within a range of fluctuating exchange rates. In this manner, the profit or loss due to fluctuations in the exchange rate would be shared by both the parties. These stochastic variations in purchase prices are modeled through a Markov chain. In this article, the resulting purchase and inventory problem is analyzed by identifying a regenerative cycle. An optimal selling price that maximizes the expected profit per unit time is also discussed. Further, optimal ordering policies under no stock-out conditions are derived with an optimal uniform demand corresponding to the optimal selling price. Through sensitivity analyses, differences in profit function with respect to carrying cost fraction, setup costs, and purchase prices are also shown. An investigation into the possible loss if this model solution is not implemented is also made through numerical illustrations. A discussion of a special case of two-purchase price scenario gives additional insight into the problem. [ABSTRACT FROM AUTHOR]

This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights.

In this paper, we study a two-echelon supply chain inventory system with a single manufacturer and a single buyer, considering price-dependent demand and variable lead time. Lead time can be reduced by added crashing cost. We first assume that the lead time demand follows a normal probability distribution and then consider the case where it is distribution free. We develop both the centralized and decentralized models and derive the optimal solutions by using profit maximization criterion. Feasibility and efficiency of the proposed models are justified through two numerical examples. We numerically investigate how the optimal decisions are affected by changes in various model-parameters. From numerical study, we observe that even though the lead time reduction diminishes the retailer's selling price, it enhances the system profit significantly. [ABSTRACT FROM AUTHOR]

This article is concerned with the problem of single-vendor single-buyer integrated supply chain inventory with price-dependent demand and product recovery. In our model, we assume that the vendor inspects each lot product in one production run in advance before delivering to the buyer, in which if defective items are unrecoverable, then he/she disposes of them; otherwise, which are immediately recovered for reuse. In addition, we consider that the demand rate is a function of unit price charged by the vendor to the buyer to widen applications to the model. The objective of this article is to minimize the joint total cost per unit time by simultaneously optimizing the buyer's order quantity, the size of each shipment of the vendor, and the number of shipments from the vendor to the buyer in one production run. Furthermore, an algorithmic procedure of finding the optimal solution is developed, and finally, some numerical examples are given to illustrate the results. [ABSTRACT FROM AUTHOR]

In the current global market, organizations use many promotional tools in order to increase their sales. One such tool is permissible delay in payments, i.e., the buyer does not have to pay for the goods purchased immediately rather can defer the payment for a prescribed period given by the supplier. This phenomenon motivates the retailer/buyer to order a large inventory lot so as to take full benefit of credit period. But the well decorated showroom (OW) with modern facilities has a limited storage capacity. Thus the retailer has to hire a rented warehouse to store the excess units. In this scenario, retailer usually adopts two types of dispatch policy: FIFO & LIFO, depending upon the situation, e.g., nature of items/deteriorating items, location of warehouse. Further in order to survive in the market, the retailer dynamically adjusts the prices of the goods to boost the demand and enhance the revenues. In the light of these facts, this paper develops an inventory model for deteriorating items with price-sensitive demand under permissible delay in payment in a two warehouse environment. Shortages are allowed and fully backlogged. The objective of this study is to find the optimal inventory and pricing policies so as to maximize the total average profit. Further, the different trade credit scenario has been exhibited with the help of a numerical example. A comprehensive sensitivity analysis has also been carried out to advocate the implication of FIFO and LIFO dispatch policy. [ABSTRACT FROM AUTHOR]

Abstract: One of the interesting subjects in supply chain management is supply management, which generally relates to the activities regarding suppliers such as empowerment, evaluation, partnerships and so on. A major objective of supplier evaluation involves buyers determining the optimal quota allocated to each supplier when placing an order. In this paper, we propose a multi-objective model in which purchasing cost, rejected units, and late delivered units are minimized, while the obtained total score from the supplier evaluation process is maximized. We assume that the buyer obtains multiple products from a number of predetermined suppliers. The buyer faces a stochastic demand with a probability distribution of Poisson regarding each product type. A major assumption is that the supplier prices are linearly dependent on the order size of each product. Since demand is stochastic, the buyer may incur holding and stockout costs in addition to the regular purchasing cost. We use the well-known L-1 metric method to solve the supplier evaluation problem by utilizing two meta-heuristic algorithms to solve the corresponding mathematical problems. [Copyright &y& Elsevier]

Recently, due to rapid economic development in emerging nations, the world's raw material prices have been rising. In today's unrestricted information environment, suppliers typically announce impending supply price increases at specific times. This allows retailers to replenish their stock at the present price, before the price increase takes effect. The supplier, however, will generally offer only limited quantities prior to the price increase, so as to avoid excessive orders. The retail price will usually reflect any supply price increases, as market demand is dependent on retail price. This paper considers deteriorating items and investigates (1) the possible effects of a supply price increase on retail pricing, and (2) ordering policies under the conditions that special order quantities are limited and demand is dependent on retail price. The purpose of this paper is to determine the optimal special order quantity and retail price to maximize profit. Our theoretical analysis examines the necessary and sufficient conditions for an optimal solution, and an algorithm is established to obtain the optimal solution. Furthermore, several numerical examples are given to illustrate the developed model and the solution procedure. Finally, a sensitivity analysis is conducted on the optimal solutions with respect to major parameters. [ABSTRACT FROM AUTHOR]

Up to now, many newsboy problems have been considered in the stochastic inventory literature. Some assume that stochastic demand is independent of selling price (p) and others consider the demand as a function of stochastic shock factor and deterministic sales price. This article introduces a price-dependent demand with stochastic selling price into the classical Newsboy problem. The proposed model analyses the expected average profit for a general distribution function of p and obtains an optimal order size. Finally, the model is discussed for various appropriate distribution functions of p and illustrated with numerical examples. [ABSTRACT FROM AUTHOR]

Abstract: The article deals with a stochastic economic order quantity (EOQ) model over a finite time horizon where uniform demand over the replenishment period is price dependent. The selling price is assumed to be a random variable that follows a probability density function. As demand is probabilistic, stock out situation may occur. Based on the partial backlogging and lost sale cases during stock out period, the author develops the criterion for the optimal solution for the replenishment size such that the integrated expected profit is maximized. Moreover, the article suggests a new function regarding price dependent demand. Finally, numerical examples and its sensitivity analysis of key parameters are given to illustrate the proposed model. [Copyright &y& Elsevier]

Abstract: The article deals with an EOQ (economic order quantity) model over an infinite time horizon for perishable items where demand is price dependent and partial backorder is permitted. The rate of deterioration is taken to be time proportional and it is assumed that shortage occurs at starting of the inventory cycle. Based on the partial backlogging and lost sale cases, the author develops the criterion for the optimal solution for the replenishment schedule, and proves the optimal ordering policy is unique. Moreover, the article suggests to new functions regarding price-dependent demand and time varying deterioration rate. Finally, numerical examples are illustrated to test the model in various issues. [ABSTRACT FROM AUTHOR]

In developing the best strategy for real-world applications, the vendor must have some knowledge of the buyers’ behavior such as response to shortages and price increases. Using this knowledge, he can develop a policy that will ensure the largest net profit. Considering the fact, a two-warehousing inventory model has been developed where the demand is price-sensitive under the bulk release rule. Stockouts are allowed and are fully backlogged. Moreover, the transportation cost is taken to be dependent on the transported units. The model jointly optimizes the selling price and the order quantity by maximizing the system profit. Results have been validated with the help of a numerical example. [ABSTRACT FROM AUTHOR]

This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights. [ABSTRACT FROM AUTHOR]