Inventory model with expiration date of items and deterioration under two-level trade credit and preservation technology investment for time and price sensitive demand: DCF approach

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

doi:10.1504/ijlsm.2017.085222

Cited by 8 publications

(3 citation statements)

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“…Then in [35], an integrated model is designed under allowable delay in payments with faulty units and variable lead time. A mathematical model for perishable goods with expiry dates with investment for preserving the items under a two-layer trade credit policy is developed in [36]. In [37], a model for perishable goods is designed with a non-instantaneous rate, where demand depends on the sale price under admitted shortages with trade credit policy.…”

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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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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“…Later, studied the model on the impact of future price increase on ordering policies for perishable items under quadratic demand. Recently, Shah et al (2017) determined a deteriorate inventory model with expiration date of items under two level trade credit and preservation technology investment for time and price sensitive demand with DCF approach.…”

Section: Introductionmentioning

confidence: 99%

Inventory Control Policies for Substitutable Deteriorating Items Under Quadratic Demand

Shah

Chaudhari²,

Jani

2019

OSCM: An Int. Journal

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In today's busy life, no one has sufficient time to buy or bargain any type of products. It is common in such cases that customers, who are looking for purchasing a certain product, will be willing to substitute with a comparable product when facing a stock-out, rather than visiting a different store to bargain the original product. In this article, we study an inventory control problem in which demand is fulfilled by using two similar substitutable items. Retailer fulfilled demand of one product by other substitutable product when stock-out of the one of them. We consider inventory levels of both of the items and time dependent demand. The orders for both products are placed at the same time. Our objective is to maximize joint profit for two substitutable deteriorating items with respect to cycle time and a time at which one product is stock-out.The numerical analysis is carried out based on the analytical results. The critical inventory parameters are computed for the decision maker.

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“…Zhang et al (2016) investigated a joint pricing, service, and preservation technology investment policy under common resource constraints. Other researchers such as Dhandapani and Uthayakumar (2016), Dye and Yang (2016), Tayal et al (2016), Tsao (2016), Shah et al (2017), Mishra et al (2017), Saha et al (2017) and Giri et al (2017) considered investment in preservation technology.…”

Section: Introductionmentioning

confidence: 99%

Joint pricing, inventory, and preservation decisions for deteriorating items with stochastic demand and promotional efforts

Soni¹,

Chauhan²

2018

J Ind Eng Int

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This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation technology investment strategies while maximizing the total profit per unit time. Based on the partial backlogging and lost sale cases, we first deduce the criterion for optimal replenishment schedules for any given price and technology investment cost. Second, we show that, respectively, total profit per time unit is concave function of price and preservation technology cost. At the end, some numerical examples and the results of a sensitivity analysis are used to illustrate the features of the proposed model.

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Inventory model with expiration date of items and deterioration under two-level trade credit and preservation technology investment for time and price sensitive demand: DCF approach

Cited by 8 publications

References 0 publications

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

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

Inventory Control Policies for Substitutable Deteriorating Items Under Quadratic Demand

Joint pricing, inventory, and preservation decisions for deteriorating items with stochastic demand and promotional efforts

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