Inventory Control Policies for Time-Dependent Deteriorating Item with Variable Demand and Two-Level Order Linked Trade Credit

Jani, Mrudul Y.; Shah, Nita H.; Chaudhari, Urmila

doi:10.1007/978-981-13-9698-4_3

Cited by 7 publications

(3 citation statements)

References 20 publications

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“…Later, studied and assessed an EOQ model, in which the demand is depending on the time-credit cycle, and also considered the constant deterioration rate. An inventory model for time-dependent decaying items was explored by Jani et al (2020). Furthermore, according to the product life cycle hypothesis, Mashud et al (2021) investigated an inventory model for deteriorating items with a discount facility.…”

Section: The Reviewmentioning

confidence: 99%

A new approach to maximize the overall return on investment with price and stock dependent demand under the nonlinear holding cost

Bhadoriya

Jani

Chaudhari³

et al. 2022

Control and Cybernetics

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This study investigates an inventory model for deteriorating products with a price and stock-dependent demand pattern where the holding cost is a non-linear function of both time and stock level. Moreover, a decreased price and a higher stock level lead to a higher rate of demand. Consequently, in this article, we present a new approach, aiming at maximization of the return on investment by maximizing the profit/cost ratio. If an inventory manager has the potential to invest in a variety of projects, but disposes of only limited resources, it is logical to strategically plan towards a better return on investment. As a result, the manager’s objective will be to develop an inventory policy with a possibly high return on investment. Therefore, a new strategy is considered in this article to optimize the profitability ratio in terms of replenishment time and selling price, which is determined as the proportion between the profit and the overall cost of the inventory scheme. This research demonstrates that optimizing the profitability ratio is equivalent to decreasing the average inventory cost of a product per unit. Also, the optimality is graphically checked and one numerical illustration is discussed to explain the result of the proposed model. Finally, sensitivity analysis of key parameters is performed to show the applicability of the proposed model. The profit/cost ratio is more sensitive to price elasticity markup or purchasing cost compared to the other parameters used. Also, for decision-makers, several helpful management insights are derived.

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Section: The Reviewmentioning

confidence: 99%

A new approach to maximize the overall return on investment with price and stock dependent demand under the nonlinear holding cost

Bhadoriya

Jani

Chaudhari³

et al. 2022

Control and Cybernetics

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“…In [18], the recycling of expiry dates is presented with deteriorating products under dissimilar supply chains. Recently in [19], an inventory model is discussed with the perishable goods having expiry dates under variable demand, and in [20], a fuzzy green model for non-instantaneous perishable items is demonstrated under carbon emission and trade credit policies.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages

Jani

Betheja

Chaudhari³

et al. 2021

Mathematics

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In particular business transactions, the supplier usually provides an admissible delay in settlement to its vendor to encourage further sales. Additionally, the demand for the commodity is inversely proportional to the function of the sales price, which is non-linear and, in some situations, a holding cost rises over time. Moreover, many goods often deteriorate consistently and shall not be sold after their expiration dates. This study analyses a model for perishable products with a maximum life span with price-dependent demand and trade credit by assimilating these variations and under the supposition of time-varying holding cost. Furthermore, to diminish the rate of deterioration, investment for preservation technology is often taken into account beforehand. Based on real-life circumstances, shortages are admitted and backlogged partially, with an exponential rise in wait time before the new good emerges. The key ambition is to calculate the optimum investment under preservation, sales price, and cycle time using the classical optimization algorithm to maximize the vendor’s net profit. Additionally, to clarify the outcomes, the numerical illustrations are addressed, and the sensitivity analysis of significant parameters is eventually implemented.

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“…Jaggi et al [19] offered a model, including selling price dependent demand under deterioration. Mishra and Talati [20] proposed a single set-up multiple deliveries for fading stuff with fixed life time.Jani et al [21] have studied an inventory policy for the item which has expiry date with two levels of trade credit depending on the quantity of order. It is considered that a supplier is ready to give a mutually agreed credit period to retailer only if the order quantity purchased by retailer is more than the predetermined quantity of ordered.…”

Section: Introductionmentioning

confidence: 99%

Innovative Approach of EOQ Structure for Decaying Items with Time Sensitive Demand, Cash- Discount, Shortages and Permissible Delay in Payments

Tripathi¹

2021

Int. J. Appl. Comput. Math

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Inventory Control Policies for Time-Dependent Deteriorating Item with Variable Demand and Two-Level Order Linked Trade Credit

Cited by 7 publications

References 20 publications

A new approach to maximize the overall return on investment with price and stock dependent demand under the nonlinear holding cost

A new approach to maximize the overall return on investment with price and stock dependent demand under the nonlinear holding cost

Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages

Innovative Approach of EOQ Structure for Decaying Items with Time Sensitive Demand, Cash- Discount, Shortages and Permissible Delay in Payments

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