An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment

2017 ◽  
Vol 254 (1-2) ◽  
pp. 165-190 ◽  
Author(s):  
Umakanta Mishra ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Sunil Tiwari ◽  
Ali Akbar Shaikh ◽  
Gerardo Treviño-Garza
Keyword(s):  
Inventory Model ◽  
Technology Investment ◽  
Deterioration Rate ◽  
Preservation Technology ◽  
Stock Dependent Demand ◽  
Preservation Technology Investment ◽  
Dependent Demand

scholarly journals An EOQ inventory model for deteriorating items with controllable deterioration rate under stock-dependent demand rate and non-linear holding cost

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Shuhua Zhang ◽  
Longzhou Cao ◽  
Zuliang Lu
Keyword(s):  
Technology Investment ◽  
Reorder Point ◽  
Preservation Technology ◽  
Stock Dependent Demand ◽  
Demand Rate ◽  
Total Profit ◽  
Holding Cost ◽  
Preservation Technology Investment ◽  
Dependent Demand Rate ◽  
Dependent Demand

<p style='text-indent:20px;'>The main purpose of this paper is to investigate the retailer's strategy in selecting the order-up-to level, the reorder point and the preservation technology investment for deteriorating items, aiming to maximize his total profit per unit time. We formulate the problem into a mathematical model that takes into account stock-dependent demand rate, stock-dependent holding cost. The terminal conditions are relaxed to allow that the reorder point can be one of the following two cases: (1) <inline-formula><tex-math id="M1">\begin{document}$ N\leq0 $\end{document}</tex-math></inline-formula>, i.e., the reorder point may be negative or zero. When the reorder point is negative, the shortage is allowed and partial backlogged. (2) <inline-formula><tex-math id="M2">\begin{document}$ N\geq0 $\end{document}</tex-math></inline-formula>, i.e., the reorder point may be without shortage or zero. We prove the existence and uniqueness of the optimal order-up-to level, the reorder point and the preservation technology investment under any given two of them for both the two cases. We then present an algorithm to search for decision variables such that the total profit per unit time is maximized. Finally, numerical examples, comparisons in performance and sensitivity analysis are carried out to examine the results obtained. On the basis of the above results, some useful managerial insights are revealed.</p>

Non-instantaneous deteriorating inventory model under the joined effect of trade-credit, preservation technology and advertisement policy

Kybernetes ◽  
2019 ◽  
Vol 49 (6) ◽  
pp. 1645-1674 ◽  
Author(s):  
Abu Hashan Md Mashud ◽  
Md. Rakibul Hasan ◽  
Hui Ming Wee ◽  
Yosef Daryanto
Keyword(s):  
Trade Credit ◽  
Optimization Technique ◽  
Inventory Model ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Content Type ◽  
Technology Investment ◽  
Deterioration Rate ◽  
Preservation Technology ◽  
Preservation Technology Investment

Purpose This paper aims to simultaneously consider an inventory model with price and advertisement dependent demand, non-instantaneous deterioration rate with preservation technology investment, partially backlogged shortages and trade credit. Design/methodology/approach This model considered a non-instantaneous deterioration, which starts after a certain storage period with a constant rate. The proposed model focused on two things. The first one is to reduce the deterioration rate by preservation technology investment, and the second one is using an appropriate trade credit period to maximize the total profit. The classical optimization technique is used to solve the problem. Findings The authors found that trade credit, advertising cost, preservation technology affect the total cost and selling price is one of the most important decision variables affecting the model. Practical implications This study provides a reference for a manufacturer and a retailer on making inventory decisions under different pricing, advertisement expense, preservation technology investment and credit strategies. Four cases are presented to illustrate the inventory model. Sensitivity analyses are performed to gain managerial insights for decision-making. Originality/value The study simultaneously considers a non-instantaneous deterioration inventory model, trade-credit, and preservation technology and advertisement policy. From our literature search, no researcher has undergone this type of study.

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