An inventory system with demand dependent on both time and price assuming backlogged shortages

San-José, Luis A.; Sicilia, Joaquı́n; Pablo, David Alcaide López de

doi:10.1016/j.ejor.2017.10.042

Cited by 46 publications

(11 citation statements)

References 17 publications

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“…Teng et al [34] generalized traditional constant demand to non-decreasing demand. San-José et al [28] explored an inventory system with demand dependent on price and time. Sharma et al [31] depicted an EPQ model with price-sensitive demand for deteriorating items, production rate depending on demand, and shortages being partially backlogged.…”

Section: Motivation and Review On Researchmentioning

confidence: 99%

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Paul

Pervin²,

Roy

et al. 2021

RAIRO-Oper. Res.

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In this paper, we formulate and solve an economic order quantity model with default risk. Our main purpose is to investigate retailer's optimal replenishment time and credit period for deteriorating items under selling price-dependent demand while maximizing profit per unit time. Here, shortages are allowed and items are partially backlogged for interested customers. We show that optimal replenishment time and credit period not only exist but they are also unique. We solve the proposed problem analytically. An algorithm is presented to derive the optimal solution of the model. The mathematical model is evaluated by numerical examples. We use Mathematica to obtain a global maximum solution to the optimal cycle time and the optimal credit period for the proposed model. A sensitivity analysis with respect to major parameters is performed in order to examine the stability of our model. At the end of the paper, conclusions are drawn and an outlook of possible future directions is depicted.

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Section: Motivation and Review On Researchmentioning

confidence: 99%

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Paul

Pervin²,

Roy

et al. 2021

RAIRO-Oper. Res.

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“…An inventory system with shortages under credit limit strategic was introduced by Rastogi et al [11] with variable holding cost. An inventory structure for time-based holding cost and fully backlogged shortages were preferred by San-Jose et al [12]. In this structure, demand is a function of price and time.…”

Section: Literature Reviewmentioning

confidence: 99%

An inventory system for varying decaying medicinal products in healthcare trade

Kumar

Kumar²,

2021

YUGOSLAV J OPERATION

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This paper introduces an inventory system for declining medicinal products under the effect of ination with price-sensitive demand. Usually, pharmaceutical inventory systems assume the deteriorating rate as constant, which is insignificant and illogical because healthcare products medicines and drugs deteriorate significantly. Thus, the deteriorating rate of medicinal products is supposed to be time-dependent and to follow three-parameter Weibull distribution. The lack of commodities is permitted with the rate of partial backlogging. This research work develops a model to optimize the total average cost of the items by calculating the ordering quantity and the optimum time intervals. Finally, through a numerical example, with sensitivity analysis, we demonstrate the effect of different parameters.

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“…Quantity discount tempt the buyer to buy more and profit sharing is balanced between two players. An inventory model with demand depend on more than one parameter is developed by [10]. They developed an optimal inventory model where demand depend on price and time.…”

Section: Iclbi (2018)mentioning

confidence: 99%

An Optimal Inventory Model for a Retailer with Price Dependent Demand and Unavailability Supply

Widyadana

Wang

Sutapa

2020

KLS

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Today many retailers face high competition, therefore they have to operate in an efficient way. One aspect of efficiency is inventory. Many research on inventory is conducted intensively to get more realistic inventory model. In this paper, an inventory model was developed by considering pricing. Many retailers try to increase their profit by setting the best price for a single item, especially for some items that have high price-dependent demand. The customer demand depends on the price such household items. In the other side, some retailers face supply problems. Supplier often cannot supply products when the products needed on time. There is delay time between customer demand and products arrive at retailer warehouse. The retailer should determine the optimal price and replenishment time. There are some assumptions are used for the model. The first assumption, the demand is known and has constant elasticity. Second, there is stochastic replenishment period and demand that are not filled are lost sales. The model is developed mathematically and a numerical example is conducted to show how the model works. A sensitivity analysis is accomplished to get some management insight and some interesting result are derived. Keywords: deteriorating inventory model; genetic algorithm; stochastic time

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An inventory system with demand dependent on both time and price assuming backlogged shortages

Cited by 46 publications

References 17 publications

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

An inventory system for varying decaying medicinal products in healthcare trade

An Optimal Inventory Model for a Retailer with Price Dependent Demand and Unavailability Supply

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