scholarly journals One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint

2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
L. L. Zhang ◽  
Y. Yang ◽  
J. Q. Cai
Keyword(s):  
Economic Activity ◽  
Practical Problem ◽  
Numerical Study ◽  
Budget Constraint ◽  
Optimal Order ◽  
Optimal Solutions ◽  
Newsboy Problem ◽  
Optimal Decisions ◽  
Order Quantities ◽  
Demand Scenario

One-way substitution means that when low-end brand goods are sold out, high-end brand goods can be offered to consumers as substitute goods, but not the opposite. In realistic economic activity, “shortage of funds” is a common practical problem for the retailer in making order decision. This paper proposes a nonlinear optimization model with the retailer’s budget to study the optimal order quantities and substitution discount for two one-way substitution products under a stochastic demand scenario, and the objective is to maximize the retailer’s revenue. We solve the model mainly according to the Karush–Kuhn–Tucker (KKT) theorem and present the conditions of optimal decisions. Finally, through the numerical study, we analyze the influence of the budget constraint and other parameters on the optimal solutions.

Supplies from developing countries: Optimal order quantities under loss risks

Omega ◽  
2008 ◽  
Vol 36 (1) ◽  
pp. 122-130 ◽  
Author(s):  
Jayavel Sounderpandian ◽  
Sameer Prasad ◽  
Manu Madan
Keyword(s):  
Developing Countries ◽  
Optimal Order ◽  
Order Quantities

scholarly journals Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Honglin Yang ◽  
Ya Yu ◽  
Yong Zha ◽  
Jijun Yuan
Keyword(s):  
Numerical Simulation ◽  
Supply Chain ◽  
Trade Credit ◽  
Equilibrium Analysis ◽  
Optimal Order ◽  
Order Quantity ◽  
Optimal Decisions ◽  
Game Equilibrium ◽  
Optimal Order Quantity ◽  
To Receive

In real supply chain, a capital-constrained retailer has two typical payment choices: the up-front payment to receive a high discount price or the delayed payment to reduce capital pressure. We compare with the efficiency of optimal decisions of different participants, that is, supplier, retailer, and bank, under both types of payments based on a game equilibrium analysis. It shows that under the equilibrium, the delayed payment leads to a greater optimal order quantity from the retailer compared to the up-front payment and, thus, improves the whole benefit of the supply chain. The numerical simulation for the random demand following a uniform distribution further verifies our findings. This study provides novel evidence that a dominant supplier who actively offers trade credit helps enhance the whole efficiency of a supply chain.

scholarly journals Managing the Newsvendor Modeled Product System with Random Capacity and Capacity-Dependent Price

2015 ◽  
Vol 2015 ◽  
pp. 1-10 ◽  
Author(s):  
Qingying Li ◽  
Ciwei Dong ◽  
Ruixin Zhuang
Keyword(s):  
Numerical Study ◽  
Market Price ◽  
Optimal Order ◽  
Selling Price ◽  
Newsvendor Model ◽  
Order Quantity ◽  
Product System ◽  
Random Capacity ◽  
Optimal Order Quantity ◽  
House Production

We consider a newsvendor modeled product system, where the firm provides products to the market. The supply capacity of the product is random, so the firm receives either the amount of order quantity or the realized capacity, whichever is smaller. The market price is capacity dependent. We consider two types of production cost structures: the procurement case and the in-house production case. The firm pays for the received quantity in the former case and for the ordered quantity in the latter case. We obtain the optimal order quantities for both cases. Comparing with the traditional newsvendor model, we find that the optimal order quantity in both the procurement case and the in-house production case are no greater than that in the traditional newsvendor model with a fixed selling price. We also find that the optimal order quantity for the procurement case is greater than that for the in-house production case. Numerical study is conducted to investigate the sensitivity of the optimal solution versus the distribution of the random capacity/demand.

scholarly journals THE CONSTRUCTIVE NATURE OF THE STRUCTURAL FEATURES OF THE BUSINESS STRATEGY OF ENTERPRISE DEVELOPMENT IN THE CONTEXT OF GLOBALIZATION

2021 ◽  
pp. 43-45
Author(s):  
А.І. Пляскіна
Keyword(s):  
Complex System ◽  
Economic Activity ◽  
Business Strategy ◽  
Structural Features ◽  
External Factors ◽  
Enterprise Development ◽  
Economic Stability ◽  
Economic Problems ◽  
Optimal Decisions ◽  
The Face

The article presents a comprehensive methodology for the formation of a business strategy for the development of an enterprise, which makes it possible to increase its economic stability in the face of changes in the parameters of the functioning environment. It has been established that ensuring the competitiveness of an enterprise should be based on alternative options for its development, depending on the influence of external factors and the level of risk when focusing on one or another variant of the production and economic activity of the enterprise. Each enterprise is a complex system of interacting elements. Models of strategic management of the enterprise at a choice of strategy are analysed. Building principles and methods of analysis, modelling and management of economic risk is of great importance for making optimal decisions in conditions of uncertainty and conflict in solving certain economic problems, including the formation of business strategy for enterprise development.

Optimal Pricing Strategies for an Inventory System with Perishable Items and Waiting Time Dependent Order Cancellations

2009 ◽  
Vol 2 (4) ◽  
pp. 80-95 ◽  
Author(s):  
A. Thangam ◽  
R. Uthayakumar
Keyword(s):  
Waiting Time ◽  
Numerical Study ◽  
Solution Procedure ◽  
Inventory System ◽  
Optimal Order ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Perishable Items ◽  
Demand Functions ◽  
Advance Sales

Although many researchers have studied inventory models for perishable items, the situation of advance sales, spot sales and order cancellations have not been addressed so far. However, this problem arises in a variety of industries including the sales of fashion garments, flight seats and hotel rooms. In this article, we deal with an inventory system in which sales cycle is divided into an advance sales period and a spot sales period. We consider order cancellation effect which depends on the waiting time of the customer orders. The goal is to determine the optimal order quantity and optimal prices in order to maximize the profit. We also show the concavity of the profit function using mathematical lemmas and theorem. Besides we develop a solution procedure which computes optimal policy effectively. Finally we present the results of numerical study for linear and exponential demand functions.

Coordination Policies for Multi-Echelon Multi-Product Inventory Systems

2011 ◽  
pp. 153-163
Author(s):  
Fidel Torres ◽  
Gonzalo Mejía
Keyword(s):  
Mathematical Model ◽  
Inventory Systems ◽  
Optimal Order ◽  
Distribution Centers ◽  
Operational Costs ◽  
Production Distribution ◽  
Replenishment Policy ◽  
Order Quantities ◽  
Product Inventory ◽  
Coordination And Collaboration

The effective coordination is a key element in the success of many cooperative supply chains. All production, distribution and supply must be adequately synchronized in order to satisfy the customer needs and at the same time optimizing the operational costs. This paper presents a multi-product, multi-echelon inventory system which comprises one manufacturer, a number of distribution centers and a number of retailers which are dependent of such distribution centers. The coordination and collaboration is achieved through a carefully designed replenishment policy. The near-optimal order quantities for each of the supply chain agents are calculated with a mathematical model in which the integrality constraints are relaxed. A number of instances were generated and tested. The results show the validity of the proposed approach.

Fiscal Policy and Public Debt

2020 ◽  
pp. 417-488
Author(s):  
Christopher Tsoukis
Keyword(s):  
Fiscal Policy ◽  
Empirical Evidence ◽  
Public Debt ◽  
Economic Activity ◽  
Budget Constraint ◽  
Policy Rules ◽  
Fiscal Multipliers ◽  
Fiscal Solvency ◽  
The Government

This chapter looks at fiscal policy, broadly interpreted to include its implications on deficits, debt, and fiscal solvency. It is informally divided in two parts, starting from the latter set of issues. After introducing the budget deficit, debt and the government budget constraint, and related issues, it proceeds to analyse fiscal solvency, deriving formal conditions and discussing extensively indicators and required policy rules. The role of growth in ensuring fiscal solvency is put in sharp relief. Additionally, the ‘dilemma of austerity’ is critically discussed, i.e. whether ‘fiscal consolidations’ can in fact damage public finances by being recessionary. We then turn to the effects of fiscal policy on economic activity: A ‘toolkit’ of static fiscal multipliers is discussed, as is the intertemporal approach to fiscal policy (including Ricardian Equivalence), complemented by empirical evidence.

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