Pricing, inventory and production policies in a supply chain of pharmacological products with rework process: a game theoretic approach

Taleizadeh, Ata Allah; Noori-daryan, Mahsa

doi:10.1007/s12351-015-0188-7

Cited by 44 publications

(15 citation statements)

References 42 publications

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“…An advance selling program is an effective strategy to meet this challenge because it can reduce the uncertainty of the subsequent regular demand (McCardle, Rajaram, & Tang, ; Boyaci & Ozer, ; Loginova, Wang, & Zeng, ) and create more demand (Zhao & Stecke, ; Prasad, Stecke, & Zhao, ; Zhao, Pang, & Stecke, ). Meanwhile, as supply chains have become increasingly globalized, raw material procurement has received attention from both academia and practice (Taleizadeh & Noori‐Daryan, ).…”

Section: Introductionmentioning

confidence: 99%

Advance Selling in the Presence of Market Power and Risk‐Averse Consumers

Sethi

et al. 2018

Decision Sciences

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We consider a manufacturer who procures raw material through a long-term contract as well as in a spot market to produce goods for selling to consumers, a fraction of whom are risk averse. We assume that the manufacturer has the market power to influence the spot market price of raw material. To increase consumer demand and obtain demand information, the manufacturer may implement an advance selling program that depends on his market power and consumer risk aversion. We investigate whether the manufacturer should offer the advance selling program and how his decision and performance are influenced by the program. We find that the advance selling program should be offered when consumer risk aversion is low, or when it is high, and the manufacturer has high and low market power. By contrast, the advance selling program should not be offered when consumer risk aversion is high and the market power is medium. Our results also reveal that even with no promotion cost of the advance selling program, the manufacturer may not always offer it. Finally, the manufacturer benefits more from advance selling when consumers are myopic and/or risk neutral. We sincerely thank the editors and two anonymous reviewers for their insightful comments and suggestions.

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Section: Introductionmentioning

confidence: 99%

Advance Selling in the Presence of Market Power and Risk‐Averse Consumers

Sethi

et al. 2018

Decision Sciences

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“…Taleizadeh et al (2015) have determined the optimal price, replenishment lot size, and number of shipments for an EPQ model with rework and multiple shipments. Taleizadeh and Noori-daryan (2016) discussed an economic production quantity model in a three levels supply chain including multiple non-competing suppliers, single manufacturer, and multiple non-competing retailers for multiple products with rework process under integrated and non-integrated structures. dealt an economic production quantity (EPQ) inventory model with reworkable defective items and multi-shipment policy.…”

Section: Literature Reviewmentioning

confidence: 99%

An economic production model for deteriorating items and time dependent demand with rework and multiple production setups

Uthayakumar

Tharani

2017

J Ind Eng Int

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Recently, much emphasis has given to study the control and maintenance of production inventories of the deteriorating items. Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and the environmental problem. Many researchers have focused on developing rework model, but few of them have developed model for deteriorating items. Due to this fact, we take up productivity and rework with deterioration as the major concern in this paper. In this paper, a production-inventory model with deteriorative items in which one cycle has n production setups and one rework setup (n, 1) policy is considered for deteriorating items with stock-dependent demand in case 1 and exponential demand in case 2. An effective iterative solution procedure is developed to achieve optimal time, so that the total cost of the system is minimized. Numerical and sensitivity analyses are discussed to examine the outcome of the proposed solution procedure presented in this research.

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“…Glock (2012) further extended the previous (Q, r) model by studying the alternative methods for reducing the 1 3 lead-time. Taleizadeh and Noori-daryan (2016) developed pricing, inventory and production policies in a three-layer supply chain with rework process under a game theoretic approach. Taleizadeh et al (2015) also studied pricing and ordering decisions in a three-layer supply chain with imperfect quality items under buyback of defective items.…”

Section: Introductionmentioning

confidence: 99%

An integrated vendor–buyer model with stochastic demand, lot-size dependent lead-time and learning in production

2019

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In this article, an imperfect vendor-buyer inventory system with stochastic demand, process quality control and learning in production is investigated. It is assumed that there are learning in production and investment for process quality improvement at the vendor's end, and lot-size dependent lead-time at the buyer's end. The lead-time for the first batch and those for the rest of the batches are different. Under n-shipment policy, the annual expected total cost of the system is derived. An algorithm is suggested to derive the optimal values of the number of shipments, the lot-size, the percentage of defective produced per batch and the safety stock factor so as to minimize the annual expected total cost of the system. The solution procedure is illustrated through numerical examples. The benefit of investment for reducing the defect rate is shown numerically. It is also observed that learning in production has significant effect on the annual expected total cost of the integrated system.

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Pricing, inventory and production policies in a supply chain of pharmacological products with rework process: a game theoretic approach

Cited by 44 publications

References 42 publications

Advance Selling in the Presence of Market Power and Risk‐Averse Consumers

Advance Selling in the Presence of Market Power and Risk‐Averse Consumers

An economic production model for deteriorating items and time dependent demand with rework and multiple production setups

An integrated vendor–buyer model with stochastic demand, lot-size dependent lead-time and learning in production

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