Imperfect Reworking Process Consideration in Integrated Inventory Model under Permissible Delay in Payments

This study develops an improved inventory model to help the enterprises to advance their profit increasing and cost reduction in a single vendor single-buyer environment with general demand curve, adjustable production rate, and imperfect reworking process under permissible delay in payments. For advancing practical use in a real world, we are concerned with the following strategy determining, which includes the buyer's optimal selling price, order quantity, and the number of shipments per production run from the vendor to the buyer. An algorithm and numerical analysis are used to illustrate the solution procedure.

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Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

Mathematical Problems in Engineering ◽

10.1155/2014/809149 ◽

2014 ◽

Vol 2014 ◽

pp. 1-16 ◽

Cited By ~ 4

Author(s):

M. F. Yang ◽

Wei-Chung Tseng

Keyword(s):

Supply Chain ◽

Lead Time ◽

Critical Issue ◽

Solution Procedure ◽

Inventory Model ◽

Permissible Delay In Payments ◽

Inventory Policy ◽

Controllable Lead Time ◽

Key Factor ◽

Delay In Payments

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain.

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Retailer’s Joint Ordering, Pricing, and Preservation Technology Investment Policies for a Deteriorating Item under Permissible Delay in Payments

Mathematical Problems in Engineering ◽

10.1155/2018/6962417 ◽

2018 ◽

Vol 2018 ◽

pp. 1-14 ◽

Cited By ~ 13

Author(s):

Umakanta Mishra ◽

Jacobo Tijerina-Aguilera ◽

Sunil Tiwari ◽

Leopoldo Eduardo Cárdenas-Barrón

Keyword(s):

Trade Credit ◽

Optimal Solution ◽

Inventory Model ◽

Selling Price ◽

Permissible Delay In Payments ◽

Investment Policies ◽

Technology Investment ◽

Preservation Technology ◽

Preservation Technology Investment ◽

Delay In Payments

This article develops an inventory model for deteriorating items with controllable deterioration rate (by using preservation technology) under trade credit policy. As in practical scenarios the demand of an item is directly associated with its selling price, keeping this in mind, it is assumed to be a price dependent demand. The main objective of the inventory model is to determine jointly the optimal ordering, pricing, and preservation technology investment policies for retailer so that the total profit is maximized. The effects of key parameters on optimal solution are studied through a sensitivity analysis with the aim of examining the behavior of the inventory model with controllable deterioration under the permissible delay in payments.

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Deteriorating Inventory Model under Permissible Delay in Payments and Fuzzy Environment

Advances in Logistics, Operations, and Management Science - Optimal Inventory Control and Management Techniques ◽

10.4018/978-1-4666-9888-8.ch005 ◽

2016 ◽

pp. 77-99 ◽

Cited By ~ 1

Author(s):

Nita H. Shah ◽

Sarla Pareek ◽

Isha Sangal

Keyword(s):

Solution Procedure ◽

Inventory Model ◽

Variable Cost ◽

Selling Price ◽

Gravity Method ◽

Deterioration Rate ◽

Eoq Model ◽

Fuzzy Environment ◽

Demand Rate ◽

Delay In Payments

This paper deals with the problem of determining the EOQ model for deteriorating items in the fuzzy sense where delay in payments is permissible. The demand rate, ordering cost, selling price per item and deterioration rate are taken as fuzzy numbers. The total variable cost in fuzzy sense is de-fuzzified using the centre of gravity method. The solution procedure has been explained with the help of numerical example.

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