scholarly journals Optimal control of an inventory system under whole sale price changes

2019 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Hamidreza Zarei ◽  
Shib Sankar Sana
Keyword(s):  
Closed Form Solution ◽  
Form Solution ◽  
Price Changes ◽  
Total Saving ◽  
Ordering Policy ◽  
Decision Variables ◽  
Optimal Ordering Policy ◽  
Optimal Ordering ◽  
The Impact ◽  
Special Order

Nowadays business owners use lots of incentive schemes to make customers buy more products. In this paper optimal ordering policy for customers is obtained when the manufacturer increases the purchasing price or temporary decreases it. Offering a special sale from the manufacturer is probabilistic and shortage occurs as partial backlogging. In this paper, the initial level of inventory when the purchasing price changes is not equal to zero. With respect to the assumptions, the amount of special order quantity, the shortage quantity, and the expected total saving from making an special order is optimized for the customer. The optimal amount of decision variables are obtained by maximizing the expected total saving function and a closed-form solution is derived. Several numerical examples are solved and sensitivity analysis is performed to prove the applicability of the proposed model. Finally, the impact of some parameters of the model including the demand, the probability of making a special order, the future prices, and the initial inventory is investigated. Optimal ordering policy for the customers is obtained in cases when an announced price increase occurs and when the prices temporarily decrease.

A SIMPLE SOLUTION METHOD FOR THE FINITE HORIZON EOQ MODEL FOR DETERIORATING ITEMS WITH COST CHANGES

2011 ◽  
Vol 28 (06) ◽  
pp. 689-704 ◽  
Author(s):  
HORNG-JINH CHANG ◽  
WEN-FENG LIN
Keyword(s):  
Closed Form Solution ◽  
Minimum Cost ◽  
Form Solution ◽  
Inventory System ◽  
Finite Horizon ◽  
Eoq Model ◽  
Ordering Policy ◽  
Optimal Ordering Policy ◽  
Cost Parameters ◽  
The Cost

In this article, we generalize Lev and Weiss's (1990) finite horizon economic order quantity (EOQ) model with cost change to the inventory system with deterioration. Supplier announces some or all of cost parameters may change after a decided time. Depending on whether the inventory is depleted at the time of the last opportunity to purchase before some or all of the cost parameters may change, there are two types of inventory models to be discussed. The main objective of this paper is to identify the optimal ordering policy of the inventory system by comparing the minimum cost of the two types of models. We suggest a finite horizon EOQ model to combine the above two types and propose a theorem that can quickly identify the optimal policy of the suggested model. In considering temporary price discount problem and discrete-time EOQ problem, in general, there are integer operators in mathematical models, but our approach offers a closed-form solution to these kinds of problems. Numerical examples are presented to demonstrate the results of the proposed properties and theorem.

scholarly journals Retailer’s Emergency Ordering Policy when Facing an Impending Supply Disruption

2021 ◽  
Vol 13 (13) ◽  
pp. 7041
Author(s):  
Jingfu Huang ◽  
Gaoke Wu ◽  
Yiju Wang
Keyword(s):  
Optimization Model ◽  
Numerical Experiments ◽  
Closed Form Solution ◽  
Form Solution ◽  
Model Solution ◽  
Inventory Cost ◽  
Supply Disruption ◽  
Procurement Policy ◽  
Ordering Policy ◽  
Procurement Strategies

Supply disruption is a common phenomenon in business activities. For the case where the supply disruption is predictable, the retailer should make an emergency procurement beforehand to decrease the inventory cost. For the scenario such that the happening time of the supply disruption obeys a certain common probability distribution but the ending time of the supply disruption is deterministic, based on minimizing the inventory cost and under two possible procurement strategies, we establish an emergency procurement optimization model. By considering the model solution in all cases, we establish a closed-form solution to the optimization model and provide an optimal emergency procurement policy to the retailer. Some numerical experiments are made to test the validity of the model and the effect of the involved parameters on the emergency procurement policy.

scholarly journals On the impact of antenna diversity in IEEE 802.11b DCF with capture

2004 ◽  
Vol 17 (1) ◽  
pp. 41-52
Author(s):  
Zoran Velkov-Hadzi ◽  
Boris Spasenovski
Keyword(s):  
Closed Form ◽  
Closed Form Solution ◽  
Access Point ◽  
Form Solution ◽  
Capture Probability ◽  
Antenna Diversity ◽  
Ieee 802.11B ◽  
Selection Diversity ◽  
Maximum Selection ◽  
The Impact

In this paper, we examined the influence of capture effect with L-fold antenna diversity at the Access Point over IEEE 802.11b DCF. We obtained an exact closed-form solution for the conditional capture probability in case of ideal selection diversity, and an approximate closed-form solution for the conditional capture probability in case of maximum selection diversity in a Rayleigh-faded channel. Obtained analytical expressions have general significance and can be applied for any other multiple access wireless network. We also analytically evaluated saturation throughput increase of the IEEE 802.11b DCF protocol exposed to capture.

Formulation of an optimal ordering policy with generalised time-dependent demand, quadratic holding cost and partial backlogging

2021 ◽  
Vol 42 (5) ◽  
pp. 1163-1179
Author(s):  
Prachi Swain ◽  
Chittaranjan Mallick ◽  
Trailokyanath Singh ◽  
Pandit Jagatananda Mishra ◽  
Hadibandhu Pattanayak
Keyword(s):  
Time Dependent ◽  
Partial Backlogging ◽  
Ordering Policy ◽  
Holding Cost ◽  
Optimal Ordering Policy ◽  
Optimal Ordering ◽  
Dependent Demand

Retail Ordering Policy Risk

2017 ◽  
pp. 197-225
Keyword(s):  
Simulation Models ◽  
Stochastic Optimisation ◽  
Control Stage ◽  
Ordering Policy ◽  
Stochastic Techniques ◽  
Ordering Policies ◽  
Optimal Ordering Policy ◽  
Policy Risk ◽  
Associated Risk Factors ◽  
Optimal Ordering

The method is applied to Retail Ordering Policy to manage the associated risk. DMAIC framework applies stochastic techniques. Stochastic optimisation determines the optimal retail ordering policies to maximise profit. Simulate every determined optimal ordering policy and calculate profits, risks, and Six Sigma metrics to measure against specified target limits. Analyse simulation results and identify and quantify the main contributors to the profits variability by using sensitivity analysis. The optimal retail ordering policies are ranked based on their profits and associated risk factors. The technically best optimal retail ordering policy is recommended to the management for implementation. Control stage is elaborated by reusing the data and presented stochastic optimisation and simulation models for ongoing management of the optimal strategy. Some changes are applied to the data and models however, in order to emulate the scenario of an implemented strategy.

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