Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure

Abstract

This paper studies supply chain model for imperfect quality items under which unit price and unit marketing expenditure imposed by the buyer, regulates the demand of the item. It is presumed that with the accustomed supply chain model, all produced items are of good quality, coincidentally, it engrosses some percentage of defective items. Thus, inspection process becomes essential for the buyer to segregate the defective items, which are then sold at discounted price at the end of the screening process. In this paper, a supply chain model is ensued to substantiate the interaction and democracy of the participants in the supply chain, the buyer and seller, is pitched by non-cooperative and cooperative game theoretical approaches. In the non-cooperative method, the Stackelberg game approach is used in which one player behaves as a leader and another one as a follower. The co-operative game approach is based on a Pareto efficient solution concept, in which both the players work together to enhance their profit. Lastly, to demonstrate the significance of the theory of the paper, numerical examples including sensitivity analysis are presented.

An EOQ Model with Carbon Emissions and Inflation for Deteriorating Imperfect Quality Items under Learning Effect

“…Jayaswal et al [34] discussed fuzzy-based economic order quantity (EOQ) model with credit financing and backorders. Yadav et al [35] proposed an inventory model which used the game theory approach for finding the optimal ordering policy for imperfect quality items. Kumar et al [36] assumed new product launching with pricing, free replacement, rework, and warranty policies via a genetic algorithmic approach.…”

Learning EOQ Model with Trade-Credit Financing Policy for Imperfect Quality Items under Cloudy Fuzzy Environment

“…Ref. [16], proposed an inventory model for supply model with imperfect quality items where demand rate is a function of price and marketing expenditure. Ref.…”

“…Ref. [16], proposed an inventory model for supply model with where demand rate is a function of price and marketing expenditu an inventory model for new product launching with pricing, fre and warranty policies via genetic algorithmic approach.…”

Economic order quantity model for imperfect quality items with environmental regulations

“…Mittal et al [23] discussed about method for redesigning the ordering policy by incorporating the cross -selling effect and also compares ordering policy for imperfect items developed by applying rules derived from apriori algorithm. Yadav et al [24] provided a supply chain model which is being used to provide the interaction and democracy of the participants in the supply chain, the buyer and seller, is pitched by non-cooperative and cooperative game theoretical approaches. Mittal et al [25] discussed about the impact of emissions on ordering policy of retailer for items which are deteriorated under permissible delay in payment where price and demand varies with passage of time.…”