Optimal Policies for Time-Varying Deteriorating Item with Preservation Technology Under Selling Price and Trade Credit Dependent Quadratic Demand in a Supply Chain

Application of preservation technology for lifetime dependent products in an integrated production system

“…The increase in profit with the application of preservation technology is 4.36 percent, which is illustrated in Figure 4. [29]. The comparative analysis shows that the proposed theory for the application of preservation technology reduces the rate of deterioration to the minimum as compared to the other models.…”

“…Yang et al [40] proposed that reduction in the rate of deterioration is a linear function of investment in preservation technology. Shah et al [29] assumed that the reduced rate of deterioration is a continuous increasing function of investment in preservation technology. Tsao [34] suggested that cost of preservation technology increases as a quadratic function of preservation efforts, which linearly reduces the rate of deterioration.…”

“…After reviewing the literature on deterioration and preservation technology, this research proposes an integrated production model for short lifetime deteriorating products, which are preserved for longer time by the application of preservation technology. This research uses a time-varying rate of deterioration that depends on the maximum lifetime of the product, as proposed by [24,5,29], and applies preservation technology to increase the maximum lifetime of the product, thus reducing the rate of deterioration. The selling-prices of these products are sensitive to the maximum product's lifetime.…”

“…Time-varying MLD − − Priyan and Uthayakumar [19] Fuzzy Triangular − − Shah et al [29] Time-varying MLD √ − Tsao [34] Constant − √…”

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

“…The results show that only when the revenue sharing rate lies roughly between 1/2 and 3/4 can the contract perfectly coordinate supply chains in most cases, which has an important implication in supplying chain coordination of deteriorating items with preservation investment. Shah et al [28] studied an inventory model in a two-level supply chain consisting of a manufacturer and a retailer. The manufacturer offers a trade credit to the retailer and the retailer's deterioration rate is time dependent and linked with preservation investment.…”