Optimal dynamic trade credit and preservation technology allocation for a deteriorating inventory model

Yang, Chih-Te; Dye, Chung-Yuan; Ding, Ji-Feng

doi:10.1016/j.cie.2015.05.027

Cited by 88 publications

(34 citation statements)

References 49 publications

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“…Furthermore, Zhang et al [29] investigated a two-echelon supply chain model for deteriorating items where both manufacturer and retailer jointly invest in preservation technology to reduce deterioration rate. Researchers such as Dye and Hsieh [8], Yang et al [27], Tsao et al [22], Zhang et al [30], and Saha et al [20] studied inventory models with preservation technology investment for deteriorating items.…”

Section: Literature Reviewmentioning

confidence: 99%

Production inventory model for controllable deterioration rate with shortages

et al. 2021

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This paper deals with an economic production quantity (EPQ) inventory model for deteriorating items under preservation technology. The preservation technology is used to protect the items from deterioration. Three different production levels are considered. It is assumed that initially the production rate is at lower rate and it increases gradually over the period. This is just in order to reduce the holding cost by avoiding the larger stock quantity in the beginning of production cycle. The shortages are permitted and fully backordered. The objective of the production inventory model is to determine optimal production policy which minimizes the manufacturer’s total cost. Theoretical results are established in order to demonstrate the existence of the optimal solution and a proper solution procedure is presented. A numerical example and a sensitivity analysis are presented to validate the theoretical results. Also, some managerial insights are provided.

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Section: Literature Reviewmentioning

confidence: 99%

Production inventory model for controllable deterioration rate with shortages

et al. 2021

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“…Dye and Hsieh [32] developed a deteriorating inventory model for finite time horizon, wherein PT and trade-credit are taken into account. Yang et al [33] extended [32] by considering time and trade-credit period dependent demand and risk. Chen and Teng [34] enhanced deteriorating inventory model under trade-credit finance by considering expiration date and discount cash flow analysis.…”

Section: Introductionmentioning

confidence: 99%

Trade-credit modeling for deteriorating item inventory system with preservation technology under random planning horizon

2018

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This paper deals with a stochastic deteriorating item inventory model with preservation technology and trade-credit finance. The planning horizon of many seasonal or fashionable items stochastically varies to some extent. On the other side, the demand of such items increases in initial phase followed by a constant. This type of demand pattern can be modeled as ramp-type demand. Deterioration of such products is a characteristic, which can be reduced by making the investment on latest equipment and technology. Consumption of such items within shelf life prevents to deterioration, which can be achieved by bulk sale. In order to stimulate the selling, trade-credit policy is also considered here. In these regards, this study examines the joint effect of preservation technology investment and trade-credit policy, wherein shortage is allowed and mixture of partial backlog and lost sales. Six cases may arise depending upon three parameters of time l (demand increases up to l), T (when on-hand inventory reaches to zero) and M (trade-credit period). The mathematical models are mainly categorized in two cases: (i) l M and (ii) l [ M. The model is illustrated through numerical experiments, sensitivity analysis, and graphical representation.

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“…They studied two models depending on the on-hand stock finish time: before and after the deterioration starts. Yang et al [19] introduced the credit period theory into inventory models with preservation investment decisions. They studied a retailer selling perishable products to customers and offering a credit period to its customers to buy the products.…”

Section: Single Level Supply Chain Inventory Modelsmentioning

confidence: 99%

Quality and Operations Management in Food Supply Chains: A Literature Review

Huang

et al. 2018

Journal of Food Quality

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We present a literature review on quality and operations management problems in food supply chains. In food industry, the quality of the food products declines over time and should be addressed in the supply chain operations management. Managing food supply chains with operations management methods not only generates economic benefit, but also contributes to environmental and social benefits. The literature on this topic has been burgeoning in the past few years. Since 2005, more than 100 articles have been published on this topic in major operations research and management science journals. In this literature review, we concentrate on the quantitative models in this research field and classify the related articles into four categories, that is, storage problems, distribution problems, marketing problems, and food traceability and safety problems. We hope that this review serves as a reference for interested researchers and a starting point for those who wish to explore it further.

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Optimal dynamic trade credit and preservation technology allocation for a deteriorating inventory model

Cited by 88 publications

References 49 publications

Production inventory model for controllable deterioration rate with shortages

Production inventory model for controllable deterioration rate with shortages

Trade-credit modeling for deteriorating item inventory system with preservation technology under random planning horizon

Quality and Operations Management in Food Supply Chains: A Literature Review

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