Inventory Replenishment for Profit Maximization over a Finite Horizon under One-time Cost Changes

2018 ◽  
Vol 19 (3_suppl) ◽  
pp. S235-S248
Author(s):  
F. J. Arcelus ◽  
T. P. M. Pakkala ◽  
G. Srinivasan
Keyword(s):  
Cost Minimization ◽  
Profit Maximization ◽  
Planning Horizon ◽  
Finite Horizon ◽  
Maximization Problem ◽  
Decision Variable ◽  
Time Cost ◽  
For Profit ◽  
Optimal Policies ◽  
The Cost

This article considers the optimal inventory ordering, purchasing and holding policies of the profit-maximization problem, as against the well-known cost-minimization case, over a finite horizon of length H, under two special conditions. First, there is change in at least one of the inventory costs, that is, in the cost of ordering and/or purchasing/holding, at some point, Tc < H, during the planning horizon. Second, it is not necessary to satisfy the demand, at a rate of R units per year, for the entire horizon. Rather, the objective is to meet the demand for a period of length H1 ≤ H. In fact, if the retailer does not have the obligation to meet the entire demand, this article shows the conditions wherein it may be more profitable to meet only a portion or may be even none of the demand. Further, such a determination can be made up front, with H1 as a decision variable and the optimal policies of the cost-minimization models, by fulfilling the entire demand, will result in lower profits. Numerical examples are included to identify the demand fulfilment and the profit differences between the cost-minimization and profit-maximization optimal policies, under the different one-time cost changes.

scholarly journals ANALYSIS OF THE COST OF PRODUCTION AND PROFIT MAXIMIZATION IN SHEEP FARMS FROM SOUTH-WEST BULGARIA

2019 ◽  
Vol 17 (Suppl.1) ◽  
pp. 426-430
Author(s):  
Darina Pamukova ◽  
Hristo Momchilov
Keyword(s):  
Profit Maximization ◽  
Sale Price ◽  
Market Prices ◽  
For Profit ◽  
Sheep Farm ◽  
South West ◽  
Cost Of Production ◽  
The Cost ◽  
Profit Maximisation ◽  
Lamb Growth

The purpose of this study is to compare the cost of production with purchase prices to analyze the farmers' situation in terms of the opportunities they have to sell their produce at market prices and not to lose them. The maximization of profit is based on a model of a milking sheep farm, to which all sheep farms in the same region in the analyzed region should aim. The production of forage (especially grain) in this region is limited, which is why the expenses for forage are the greatest in production for both products – milk and lamb growth. The cost analysis indicated that it was lower in some of the farms, yet close to the sale price, while in the larger portion of the farms (in all three groups), it was higher. The developed model for profit maximisation in the production of sheep’s milk led us towards the following parameters: milk price of BGN 1.40 per litre and amount of produced milk between 42,000 and 45,000 litres, in which case the profit was maximal per both methods.

scholarly journals Decision making for stable inspection planning of deteriorating structures based on constraint reliability and uncertainties

2014 ◽  
Vol 3 (3) ◽  
pp. 409
Author(s):  
Jalal Alsarraf ◽  
S.A.M. Swilem ◽  
Khaled Alawadhi
Keyword(s):  
Cost Minimization ◽  
Life Time ◽  
Time Cost ◽  
Inspection Planning ◽  
Minimization Method ◽  
Acceptable Result ◽  
Target Values ◽  
Optimal Criterion ◽  
The Cost ◽  
Failure Probabilities

Life-time cost minimization is considered as the optimal criterion for planning of inspection, repair and maintenance of structures. However, most of the probabilities and the cost items related to the cost analysis generally contain inevitable uncertainties in actual cases. The appropriateness of inspection planning may be lost by several errors induced by such uncertainties. In this study, a cost minimization method with the constraint of reliability is developed in order to obtain stable inspection planning against the estimation errors of the parameters. In the analysis, the life-time cost optimization is carried out under the constraint that the failure probabilities of the members are controlled below the respective target values allowed for the members. First, initial target failure probabilities are assumed for each member. Then, the robustness of the inspection planning is investigated by adjusting the parameters within the range of uncertainties. The initial values of the target failure probabilities are altered until an acceptable result is obtained. The applicability of the proposed method is examined for a structure with several uncertain parameters. A sequential cost minimization method is employed to optimize the life-time cost. It is made clear that by using this approach, the stability of the life-time cost is maintained without losing the benefit of the cost minimization method. Keywords: Crack, Fatigue, Inspection, Numerical Model, Reliability, Structure.

scholarly journals Assuring Not-For-Profit Hospital Competitiveness Through Proper Accounting For The True Cost Of Capital

2010 ◽  
Vol 8 (11) ◽  
Author(s):  
Rakesh Duggal ◽  
Michael Craig Budden
Keyword(s):  
Cost Of Capital ◽  
Profit Maximization ◽  
Font Size ◽  
Non Profit ◽  
True Cost ◽  
Wealth Maximization ◽  
For Profit ◽  
Not For Profit ◽  
The Cost

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">The topic of cost of capital is very important, especially for not-for-profit (NFP) organizations.<span style="mso-spacerun: yes;">&nbsp; </span>Since profit maximization or stockholder wealth maximization cannot be their objective, NFP firms must be all the more aware of their costs, including the cost of capital, to sustain and grow the quality and quantity of their services to their consumers.<span style="mso-spacerun: yes;">&nbsp; </span>Yet, research into this topic has been lagging.<span style="mso-spacerun: yes;">&nbsp; </span>This paper adapts and enhances an existing methodology and illustrates how a non-profit hospital&rsquo;s cost of capital can be estimated</span></em><span style="font-size: 10pt;">.</span></span></p>

scholarly journals Real Estate Asset Management Companies’ Economies of Scale: Is It a Dream or Reality? The Italian Case

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
Evita Allodi ◽  
Claudio Cacciamani ◽  
Michele Caliolo ◽  
Pier Paolo De Santis ◽  
Fabio Della Marra ◽  
...  
Keyword(s):  
Real Estate ◽  
Business Model ◽  
Asset Management ◽  
Economies Of Scale ◽  
Cost Minimization ◽  
Profit Maximization ◽  
Single Model ◽  
For Profit ◽  
Italian Case ◽  
Real Estate Management

The research focuses on a sample of 26 Italian real estate asset management companies (Società di Gestione del Risparmio “SGR”)—whose asset management is totally linked to real estate funds—that considers a period of six years (2013–2018). Using some variables extrapolated from the internal accountability of each SGR, the analysis investigates possible relationships between them to verify the presence or absence of economies of scale of Italian real estate management companies by multivariate regressions. The results show that there is no single model for profit maximization and cost minimization, but all depends on the business model that each SGR decides to adopt.

scholarly journals Link-based influence maximization in networks of health promotion professionals

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0256604
Author(s):  
Maurits H. W. Oostenbroek ◽  
Marco J. van der Leij ◽  
Quinten A. Meertens ◽  
Cees G. H. Diks ◽  
Heleen M. Wortelboer
Keyword(s):  
Health Promotion ◽  
Target Function ◽  
Computation Time ◽  
Influence Maximization ◽  
Health Promotion Program ◽  
Maximization Problem ◽  
Decision Variable ◽  
Optimal Node ◽  
The Cost ◽  
Influence Maximization Problem

The influence maximization problem (IMP) as classically formulated is based on the strong assumption that “chosen” nodes always adopt the new product. In this paper we propose a new influence maximization problem, referred to as the “Link-based Influence Maximization Problem” (LIM), which differs from IMP in that the decision variable of the spreader has changed from choosing an optimal seed to selecting an optimal node to influence in order to maximize the spread. Based on our proof that LIM is NP-hard with a monotonic increasing and submodular target function, we propose a greedy algorithm, GLIM, for optimizing LIM and use numerical simulation to explore the performance in terms of spread and computation time in different network types. The results indicate that the performance of LIM varies across network types. We illustrate LIM by applying it in the context of a Dutch national health promotion program for prevention of youth obesity within a network of Dutch schools. GLIM is seen to outperform the other methods in all network types at the cost of a higher computation time. These results suggests that GLIM may be utilized to increase the effectiveness of health promotion programs.

Cost-minimization analysis of drugs used in the treatment of Asthma and COPD diseases in India

2020 ◽  
Vol 15 ◽  
Author(s):  
Billu Payal ◽  
Anoop Kumar ◽  
Harsh Saxena
Keyword(s):  
Generic Drugs ◽  
Cost Minimization ◽  
Cost Savings ◽  
Chronic Obstructive ◽  
Pulmonary Medicine ◽  
Potential Cost ◽  
Maximum Cost ◽  
Cost Minimization Analysis ◽  
Cost Variation ◽  
The Cost

Background: Asthma and Chronic Obstructive Pulmonary Diseases (COPD) are well known respiratory diseases affecting millions of peoples in India. In the market, various branded generics, as well as generic drugs, are available for their treatment and how much cost will be saved by utilizing generic medicine is still unclear among physicians. Thus, the main aim of the current investigation was to perform cost-minimization analysis of generic versus branded generic (high and low expensive) drugs and branded generic (high expensive) versus branded generic (least expensive) used in the Department of Pulmonary Medicine of Era Medical University, Lucknow for the treatment of asthma and COPD. Methodology: The current index of medical stores (CIMS) was referred for the cost of branded drugs whereas the cost of generic drugs was taken from Jan Aushadi scheme of India 2016. The percentage of cost variation particularly to Asthma and COPD regimens on substituting available generic drugs was calculated using standard formula and costs were presented in Indian Rupees (as of 2019). Results: The maximum cost variation was found between the respules budesonide high expensive branded generic versus least expensive branded generic drugs and generic versus high expensive branded generic. In combination, the maximum cost variation was observed in the montelukast and levocetirizine combination. Conclusion: In conclusion, this study inferred that substituting generic antiasthmatics and COPD drugs can bring potential cost savings in patients.

scholarly journals Genetic Algorithm for the Retailers’ Shelf Space Allocation Profit Maximization Problem

2021 ◽  
Vol 11 (14) ◽  
pp. 6401
Author(s):  
Kateryna Czerniachowska ◽  
Karina Sachpazidu-Wójcicka ◽  
Piotr Sulikowski ◽  
Marcin Hernes ◽  
Artur Rot
Keyword(s):  
Genetic Algorithm ◽  
Profit Maximization ◽  
Allocation Rule ◽  
Maximization Problem ◽  
Shelf Space ◽  
Allocation Model ◽  
Space Allocation ◽  
Shelf Space Allocation ◽  
To Receive

This paper discusses the problem of retailers’ profit maximization regarding displaying products on the planogram shelves, which may have different dimensions in each store but allocate the same product sets. We develop a mathematical model and a genetic algorithm for solving the shelf space allocation problem with the criteria of retailers’ profit maximization. The implemented program executes in a reasonable time. The quality of the genetic algorithm has been evaluated using the CPLEX solver. We determine four groups of constraints for the products that should be allocated on a shelf: shelf constraints, shelf type constraints, product constraints, and virtual segment constraints. The validity of the developed genetic algorithm has been checked on 25 retailing test cases. Computational results prove that the proposed approach allows for obtaining efficient results in short running time, and the developed complex shelf space allocation model, which considers multiple attributes of a shelf, segment, and product, as well as product capping and nesting allocation rule, is of high practical relevance. The proposed approach allows retailers to receive higher store profits with regard to the actual merchandising rules.

Measuring the effects of tourists’ relative willingness to spend and third-degree price discrimination on inbound tourism expenditure differentials

2021 ◽  
pp. 135481662110300
Author(s):  
Usamah F Alfarhan ◽  
Khaldoon Nusair ◽  
Hamed Al-Azri ◽  
Saeed Al-Muharrami ◽  
Nan Hua
Keyword(s):  
Price Discrimination ◽  
Profit Maximization ◽  
Tourism Industry ◽  
Theoretical Argument ◽  
Total Expenditure ◽  
Conditional Quantile ◽  
For Profit ◽  
Inbound Tourism ◽  
Tourism Expenditure ◽  
Quantile Estimates

Tourism expenditures are determined by a set of antecedents that reflect tourists’ willingness and ability to spend, and de facto incremental monetary outlays at which willingness and ability is transformed into total expenditures. Based on the neoclassical theoretical argument of utility-constrained expenditure minimization, we extend the current literature by applying a sustainability-based segmentation criterion, namely, the Legatum Prosperity IndexTM to the decomposition of a total expenditure differential into tourists’ relative willingness to spend and an upper bound of third-degree price discrimination, using mean-level and conditional quantile estimates. Our results indicate that understanding the price–quantity composition of international inbound tourism expenditure differentials assists agents in the tourism industry in their quest for profit maximization.

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