Price-sensitive imperfect production inventory model with exponential partial backlogging

Pal, Brojeswar; Adhikari, Subhankar

doi:10.1080/23302674.2017.1323133

Cited by 16 publications

(14 citation statements)

References 55 publications

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“…In [5], a combined inventory model and pricing strategy for a maximum fixed lifetime declining rate with allowable shortages are discussed. An incomplete production model with pricesensitive demand under exponential partial backlogging shortages is proposed in [6], and in [7], a joint replenishment problem is presented with quantity discounts and minimum order constraints under stochastic demand. In [8], a multi-product manufacturing solution is proposed with a low failure rate and optimal energy consumption under variable demand.…”

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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“…[17] suggested a two-layer game method on pricing, ordering, and allocation policies in a supply chain, including a supplier and two retailers. [27] Studied a two-level supply chain model consisting of the producer and retailer where the manufacturer sells the outcome in both direct and retail channels. Additionally, they assume that the customers' demand is sensitive to the selling price of each member, delivery time for direct channel, and retail service for the business where the demand in the direct business has a negative effect on higher selling price, lengthy delivery time for direct market and more retail servicing from the retail market.…”

Section: Price-dependent Demandmentioning

confidence: 99%

“…[43] investigated an economic generation quantity model for three kinds of faulty goods with rework the economic production quantity (EPQ) model problem for a single object below the hypotheses of the defective commodity, and complete rework has been performed by [44]. [27,45] developed the models under multiple conditions with regard to the planned method, one of which examines an imperfect generation system that produces remarkable low-quality commodities in lot-sizing restrictions. [17] optimized a stochastic lotsizing difficulty for a single faulty stage generation system with paramount rework, faulty preventive preservation, and minimal repair.…”

Section: Reworkmentioning

confidence: 99%

An Optimal Two-level Supply Chain Model for Small and Medium-sized Enterprises with a rework for New Products and Price-Dependent Demand

2020

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Today, the advent of new technologies, globalization of markets, customers' varied needs, and increasingly fierce competition, are making SMEs seek to improve engagement with their suppliers, and cost management practices in order to survive. SMEs clearly need to focus on the interests of the entire supply chain by enacting win-win policies. In this study, we investigate a two-level inventory model featuring a manufacturer and a buyer in the competitive market with the policy of producing new products. Imperfect quality products and the capacity to rework are also considered in the model. In other words, because of the competitive nature of the market, any increase in price leads to a decrease in demand. The mathematical model is proposed over two scenarios: a scenario where shortage can occur, and one with no possibility of shortage. The objective function of the mathematical model revolves around the central goal of maximizing the total profit of the supply chain considering both independent and joint optimization by the supply chain members. A new algorithm is proposed to solve the mathematical model whose applicability is evaluated by giving a numerical example to the analysis software MATLAB. The results are analyzed and discussed using a sensitivity analysis approach.

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“…An imperfect production system is a system that deteriorates over time and produces certain defective products with defect-free products, and at the same time, can be confronted with disruption in production facilities /machines. Most previous research defines an imperfect system as a production system where defective items are produced at the start of production (Chiu et al, 2007;Sarker et al, 2008;Pal and Adhikari, 2019;Jain et al, 2018) or when it shifts from the 'in-control' state to the 'out-of-control' state (Alfares et al, 2005;Pal et al, 2013). Chiu et al (2007) and Öztürk (2018) represent an imperfect system by assuming both random machine failure and the production of defective items.…”

Section: Literature Reviewmentioning

confidence: 99%

A Markovian production-inventory system with consideration of random quality disruption

Karim

Nakade

2020

JAMDSM

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In this paper, we develop a stochastic model for an imperfect production-inventory system that faces random quality disruption and has limited time for production. In each time planning horizon, the inventory level is affected by product quality disruption. When the production system switches to the 'out-of-control' state from the 'in-control' state, it starts producing some defective products along with defect-free products, and this switching time is stochastic. The process of the inventory levels at the start of the time horizon is expressed by using a finite and continuous state continuous-time Markov process. We construct mathematical expressions of the transition probability, the steady-state probability, and the long-run average cost. Through a numerical experiment, the near-optimal solution is achieved. The outcome shows that under the situation of production time constraint, the integration of safety stock in an interruption prone production-inventory system, assists in improving the average cost function. The results also show that the optimal safety stock is large when the defect percentage, or the production switching rate, or the shortage cost is very high. Conversely, the small safety stock is desirable when the inventory holding cost or the rework cost is high.

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Price-sensitive imperfect production inventory model with exponential partial backlogging

Cited by 16 publications

References 55 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

An Optimal Two-level Supply Chain Model for Small and Medium-sized Enterprises with a rework for New Products and Price-Dependent Demand

A Markovian production-inventory system with consideration of random quality disruption

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