A Comparative Study Between Inventory Followed by Shortages and Shortages Followed by Inventory Under Trade-Credit Policy

Khanra, Sudhansu; Mandal, Buddhadev; Sarkar, Biswajit

doi:10.1007/s40819-015-0024-z

Cited by 9 publications

(6 citation statements)

References 47 publications

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“…Khanra et al [12] investigated an economic order quantity model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Khanra et al [13] dealt with a comparison between inventory followed by shortages model and shortages followed by inventory model with variable demand rate and assumed that the stock deteriorates over time which follows a two parameter Weibull distribution. De and Sana [8] investigated an intuitionistic fuzzy economic order quantity inventory model with backlogging.…”

Section: Related Workmentioning

confidence: 99%

A Net Present Value Approach in Developing Optimal Replenishment Policies with Allowable Shortages for a Product Life Cycle

Weng

2015

Int. J. Appl. Comput. Math

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In this paper, we utilize a net present value approach to devise replenishment policy with allowable shortages in the finite planning horizon by considering a general, time-varying, continuous, deterministic demand function for a product life cycle. We consider four possible alternatives for the inventory problem in the shortage models. (1) It starts with an instant replenishment and ends with zero inventories, (2) It starts with an instant replenishment and ends with shortages, (3) It starts with shortages and ends with zero inventories, or (4) It starts and ends with shortages. We investigate the optimal number of inventory replenishments, the corresponding optimal inventory replenishment time points and the shortage time points and analytically compare these four inventory models based on minimizing the total relevant cost. A complete search procedure is developed to find the optimal solution by employing the properties derived in this paper and the well-known Nelder-Mead algorithm. Also, several numerical examples are carried out to illustrate the features of these models by utilizing the search procedure developed in this paper. Then various models are analytically compared, and identified the best alternative among them based on minimizing total relevant costs. The ith beginning time point of shortage, i = 1, 2, . . . , n (decision variables) (time point) α, β the constant parameters for the revised Beta distribution demand function f (t) the demand function at time t, and 0 ≤ t ≤ H, as shown in Eq. (1) Keywords

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Section: Related Workmentioning

confidence: 99%

A Net Present Value Approach in Developing Optimal Replenishment Policies with Allowable Shortages for a Product Life Cycle

Weng

2015

Int. J. Appl. Comput. Math

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“…Recently, Sarkar et al [38] obtained the optimal decision of a retailer for time-varying deterioration items with selling-price and credit-period dependent demand to maximize the retailer's profit. Related articles include studies by [13,18,36]. However, when the purchase amount is large, to avoid customer defaults and to stimulate consumption, the manufacturer usually agrees with the retailer on the following payment method.…”

Section: Introductionmentioning

confidence: 99%

Integrated inventory model involving quality improvement investment and advance-cash-credit payments

2021

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This paper investigates the effects of investment and inspection policies on an integrated production–inventory model involving defective items and upstream advance-cash-credit payment provided by the supplier. In this model, retailers offer customers a downstream credit period. Furthermore, the defective rate of the item can be improved through capital co-investment by the supplier and retailer. The objective of this study was to determine the optimal shipping quantity, order quantity, and investment alternatives for maximizing the supply chain's joint total profit per unit time. An algorithm was developed to obtain the optimal solution for the proposed problem. Several numerical examples are used to demonstrate the proposed model and analyze the effects of parameters changes on the optimal solutions. Finally, management implications for relevant decision makers are obtained from the numerical examples.

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“…Recently, Lashgari et al [12] investigated an inventory control problem for deteriorating items with two-level trade credit linked to order quantity. Related articles include studies by Sana [13], Khanra et al [14], Sarkar [15], Jaggi et al [16], Khanra et al [17], Ray [18], Khanra et al [19], and their references.…”

Section: Introductionmentioning

confidence: 99%

Optimal Production and Ordering Strategies with Defective Items and Allowable Shortage under Two-part Trade Credit

2018

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Abstract. This study investigated a production-inventory model with defective items under a two-part trade credit, where the agreement of conditionally freight concession is considered in an integrated supply chain. It is assumed here that the retailer conducts the inspection process before selling incoming items. All the defective items are discovered, stored, and sold as a single batch to a secondary market at a decreased price. Furthermore, shortages are allowed and completely backlogged for the retailer. The purpose of this study is to determine the optimal number of shipments per production cycle for the supplier and the optimal length of time when there is no inventory shortage and replenishment cycle for the retailer, such that the total pro t function has a maximum value. In theoretical analysis, the existence and uniqueness of the optimal solutions are shown, and an algorithm is developed to nd the optimal solutions. Furthermore, numerical examples are presented to demonstrate the solution procedures, and a sensitivity analysis of the optimal solutions regarding all parameters is also carried out.

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A Comparative Study Between Inventory Followed by Shortages and Shortages Followed by Inventory Under Trade-Credit Policy

Cited by 9 publications

References 47 publications

A Net Present Value Approach in Developing Optimal Replenishment Policies with Allowable Shortages for a Product Life Cycle

A Net Present Value Approach in Developing Optimal Replenishment Policies with Allowable Shortages for a Product Life Cycle

Integrated inventory model involving quality improvement investment and advance-cash-credit payments

Optimal Production and Ordering Strategies with Defective Items and Allowable Shortage under Two-part Trade Credit

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