Pricing policy for declining demand using item preservation technology

Khedlekar, Uttam Kumar; Shukla, Diwakar; Namdeo, Anubhav

doi:10.1186/s40064-016-3627-x

Cited by 11 publications

(7 citation statements)

References 27 publications

(27 reference statements)

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“…A growing literature in closed-loop supply chain highlights the importance of product recovery for remanufacturing or recycling end-of-use products, thereby showing the economical advantages (Ferrer and Swaminathan, 2006;Agrawal et al, 2014;Panda et al, 2017;Modak et al, 2018). There is much profitability associated with remanufacturing: elaborating the product line, protection of brand, environmental legislation, value retrieval and reaching new market section (Atasu, Sarvary and Van Wassenhove, 2008;Atasu, Guide and Van Wassenhove, 2008;Guide and Van Wassenhove, 2009;Hauser and Lund, 2003;Khedlekar et al, 2016;Gandhi et al, 2018). Jena and Sarmah (2014) focused on cooperation and competition between two manufacturers for selling the new products in the market and collection of end-of-use and end-of-life (EOL) products for remanufacturing through a common retailer in a closed-loop supply chain.…”

Section: Literaturementioning

confidence: 99%

Three-layer supply chain policy under sharing recycling responsibility

Khedlekar

Singh

2019

JAMR

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Purpose For smooth running of business affairs, there needs to be a coordination among manufacturer, collector and retailer in forward and reverse supply chain. This paper handles the problem of making pricing, collecting and percentage sharing decisions in a closed-loop supply chain. The purpose of this paper is to examine the effect of responsibility sharing percentage on the profits of a manufacturer, a retailer and a collector. The paper further aims to understand the mutual interactions among decision variables and profit functions. It also determines the optimal selling price, optimal time, wholesale price, sharing percentage and optimal return rate in such a manner that the profit function is maximized. Design/methodology/approach The authors presented a three-echelon model consisting of a manufacturer, a retailer and a collector in the closed-loop supply chain and optimized the profits of each supply chain member. The authors introduced SRR models for the remanufacturing by providing some percentage of physical and financial support to the collector. Optimization techniques have been applied to obtain optimal solutions. Numerical examples and graphical representations of the optimal solutions are provided to illustrate the model. Findings This study stresses on profitable value retrieval from returned products, and it discusses how responsibility sharing can improve profitability and reduce the workload of an individual. In total, three main results are found. First, sharing and coordination among chain members can improve collector’s profit. Second, supply chain performance may also improve over time. Third, the profit of each member of the supply chain increases with an increase in sharing percentage up to a certain limit. So, the manufacturer can share the responsibility of the collector under a fixed limit. Research limitations/implications The main limitation of this model is that there is no difference between manufactured and remanufactured products. There are many correlated issues that need to be further investigated. The future study in this direction may include multi-retailer, stochastic demand patterns. Practical implications It is directly utilized by supply chain industries in which coordination among chain members is still needed to maximize profits. This information enables the manufacturer to assist the collector financially or physically for the proper management of the three-layer supply chain. The present work will form a guideline to choose the appropriate parameter(s) and mathematical technique(s) in different situations for remanufacturable products. Social implications From the management point of view, this study delivers the strongest result to remanufacturing companies and for whom effective and efficient coordination among chain members is vital to the overall performance of the supply chain. Originality/value There are very few studies that consider the remanufacturing of used products under a fixed time period. The authors considered selling price-sensitive and time-dependent exponentially declining demand. This model is developed by considering all possible help to a collector from manufacturer to collect used products from consumers. This research complements past research by showing coordination among supply chain members within a fixed time horizon.

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Section: Literaturementioning

confidence: 99%

Three-layer supply chain policy under sharing recycling responsibility

Khedlekar

Singh

2019

JAMR

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“…This idea provides more effectiveness in business. Khedlekar et al [38] designed an EOQ, in this model the demand for products is price sensitive and linearly decreasing rate. They considered the profit as the concave function of the optimal selling price, they also stated that the optimal selling price, the length of the replenishment cycle and the optimal preservation concept investment simultaneously.…”

Section: Review Of Litetaturementioning

confidence: 99%

Decision makings in discount pricing policy for imperfect production system

Khedlekar

Tiwari

2019

YUGOSLAV J OPERATION

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In this paper, we discussed the effects of discount price on demand and profit in a diminishing market. A production plan has been suggested for an imperfect production system. Here, demand is considered to be price sensitive and negative power function of the selling price. This problem is solved by optimization, using the Hessian matrix of order three. The main objective is to find the optimal expected average profit, optimal selling price, discount rate, backorder level, and lot-size. The recommendations are provided to offer a price discount for limited sale season on different occasions. A numerical example is presented to validate the model and is graphically illustrated accordingly.

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“…Liu et al [2015] provided joint dynamic pricing and investment strategy for foods perishing at a constant rate with price and quality dependent demand. Zhang et al [20] studied the integrated supply chain model for deteriorating items, in this model both manufacturer and retailer cooperatively invest in preservation technology in order to reduce their deterioration cost under different realistic scenarios.…”

Section: Introductionmentioning

confidence: 99%

An Inventory Model for Deteriorating Items with Stock Dependent Demand and Partial Backlogging

Kumar¹

2021

IJRASET

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In this paper, we formulate a deteriorating inventory model with stock-dependent demand Moreover, it is assumed that the shortages are allowed and partially backlogged, depending on the length of the waiting time for the next replenishment. The objective is to find the optimal replenishment to maximizing the total profit per unit time. We then provide a simple algorithm to find the optimal replenishment schedule for the proposed model. Finally, we use some numerical examples to illustrate the model. Keywords- Inventory, Deteriorating items, Stock dependent demand, Partial backlogging

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Pricing policy for declining demand using item preservation technology

Cited by 11 publications

References 27 publications

Three-layer supply chain policy under sharing recycling responsibility

Three-layer supply chain policy under sharing recycling responsibility

Decision makings in discount pricing policy for imperfect production system

An Inventory Model for Deteriorating Items with Stock Dependent Demand and Partial Backlogging

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