Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

Mashud, Abu Hashan Md; Wee, Hui–Ming; Huang, Chiao-Ven; Wu, Jei‐Zheng

doi:10.3390/math8111981

Cited by 16 publications

(16 citation statements)

References 54 publications

(62 reference statements)

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“…The present study contributes to the literature by investigating greenhouse managers' decisions regarding PRT and GRT investment in a trade credit system. Mashud et al [40] presented a model for deteriorating items in the newsboy problem with delivery strategy. Baek et al [41] anticipated a model considering carbon emissions with a discount policy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Some numerical illustrations based on real examples reveal similar benefits for the supplier and retailer. We used the parameters and most data from Mishra et al [40] with some revisions. We solved the proposed model using Mathematica 9 software using a 2.60 GHz Intel Core i7 CPU with 8.00 GB of RAM.…”

Section: Real Case Background With Links To Contributionsmentioning

confidence: 99%

“…Example 1. For partial backorders, we solved the model using Mathematica 9 through the four steps detailed as follows; data were obtained from Mishra et al [40], with some revisions. The results are shown in Table 1.…”

Section: Real Case Background With Links To Contributionsmentioning

confidence: 99%

See 2 more Smart Citations

Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

et al. 2021

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This study investigated how greenhouse managers should invest in preservation and green technologies and introduce trade credit to increase their profits. We propose a supply chain inventory model with controllable deterioration and emission rates under payment schemes for shortage and surplus, where demand depends on price and trade credit. Carbon emissions and deterioration are factors affecting global warming, and many greenhouse managers have focused on reducing carbon emissions. Carbon caps and tax-based incentives have been used in many greenhouses to achieve such reduction. Because of the importance of reducing carbon emissions for developing a green supply chain, various studies have investigated how firms deal with carbon emission constraints. In this continuation, we have used green technology to curb the excessive emissions from the environment or make it clean from CO2. In a seller–buyer relationship, the seller can offer a trade credit period to the buyer to manage stock and stimulate demand. Deterioration may become a challenge for most firms as they are under time constraints control, and preservation technology could help. This study proposes three novel inventory strategies for a sustainable supply chain (full backorder, partial backorder, and no backorder), linking all these important issues. The solution optimizes total annual profit for inventory shortage or surplus. We conducted a numerical study with three examples to evaluate the model’s authenticity and effectiveness and demonstrate the solution technique. The deterioration and emission rates can be included in a trade credit policy to increase greenhouse profits. The results suggest that greenhouse managers could apply the proposed model to manage real-world situations.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Real Case Background With Links To Contributionsmentioning

confidence: 99%

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Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

et al. 2021

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“…Demand is a fundamental key factor in inventory models because it determines the perplexity of optimal results. Sometimes demand becomes uncertain (Mashud et al 2020b) and sometimes it depends on the price of the products (Mashud et al 2021a(Mashud et al , 2021c. Fuzzy demand is also very popular among the practitioners of inventory research (Tayyab et al 2019a).…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

AlArjani

Miah

Uddin

et al. 2021

JRFM

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Recycling of products has a great impact on contemporary sustainable business strategies. In this study, a sustainable recycling process in a production-inventory model for an imperfect production system with a fixed ratio of recyclable defective products is introduced. The piecewise constant demand rates of the non-defective items are considered under production run-time, production off-time with positive stock, and production off-time with shortages under varying conditions. Based on the production process, two cases are studied using this model. The first case does not consider recycling processes, while the second case picks up all defective items before sending these items to recycling during the production off-time; the recycled items are added to the main inventory. The aim of this study is to minimize the total cost and identify the optimal order quantity. The manufacturing process with the recycling process provides a better result compared to without recycling in the first case. Some theoretical derivations are developed to enunciate the objective function using the classical optimization technique. To validate the proposed study, sensitivity analysis is performed, and numerical examples are given. Finally, some managerial insights and the scope of future research are provided.

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“…Given that the inherent perishability can occur immediately, Pal et al [3] addressed a production-inventory model for deteriorating products when the production cost depends on both production order quantity and production rate. Later, meanwhile, Mashud et al [4] determined the optimal replenishment policy of deteriorating goods for the classical newsboy inventory problem by considering multiple just-in-time deliveries. Additionally, Mashud et al [5] derived an inventory model for deteriorating products that calculates the optimal vales for replenishment time, price, and green investment cost.…”

Section: Introductionmentioning

confidence: 99%

An Inventory Model for Perishable Items with Price-, Stock-, and Time-Dependent Demand Rate considering Shelf-Life and Nonlinear Holding Costs

Macías-López

Cárdenas–Barrón

Peimbert-García

et al. 2021

Mathematical Problems in Engineering

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Nowadays, consumers are more health conscious than before, and their demand of fresh items has intensely increased. In this context, an effective and efficient inventory management of the perishable items is needed in order to avoid the relevant losses due to their deterioration. Furthermore, the demand of products is influenced by several factors such as price, stock, and freshness state, among others. Hence, this research work develops an inventory model for perishable items, constrained by both physical and freshness condition degradations. The demand for perishable items is a multivariate function of price, current stock quantity, and freshness condition. Specific to price, six different price-dependent demand functions are used: linear, isoelastic, exponential, logit, logarithmic, and polynomial. By working with perishable items that eventually deteriorate, this inventory model also takes into consideration the expiration date, a salvage value, and the cost of deterioration. In addition, the holding cost is modelled as a quadratic function of time. The proposed inventory model jointly determines the optimal price, the replenishment cycle time, and the order quantity, which together result in maximum total profit per unit of time. The inventory model has a wide application since it can be implemented in several fields such as food goods (milk, vegetables, and meat), organisms, and ornamental flowers, among others. Some numerical examples are presented to illustrate the use of the inventory model. The results show that increasing the value of the shelf-life results in an increment in price, inventory cycle time, quantity ordered, and profits that are generated for all price demand functions. Finally, a sensitivity analysis is performed, and several managerial insights are provided.

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Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

Cited by 16 publications

References 54 publications

Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

An Inventory Model for Perishable Items with Price-, Stock-, and Time-Dependent Demand Rate considering Shelf-Life and Nonlinear Holding Costs

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