An Integrated Vendor-Buyer Model with Uncertain Lead Time, Life Time under Inflation and Variable Holding Cost

2013 ◽  
pp. 371-380
Author(s):  
S. R. Singh ◽  
Diksha Bhatia
Keyword(s):  
Lead Time ◽  
Life Time ◽  
Time Value Of Money ◽  
Time Value ◽  
Deterioration Rate ◽  
Holding Cost ◽  
Variable Holding Cost ◽  
Value Of Money ◽  
Unsatisfied Demand ◽  
Shortage Costs

This study considers the problem of a vendor which supplies an item to the buyer with imprecise partial backlogging rate of unsatisfied demand and non instantaneous deterioration rate considering variable holding cost, the effect of inflation and time value of money. The supplier’s lead time is a stochastic function of his managing cost. The extra costs incurred by the retailer due to the uncertain lead time in terms of shortage costs or lost sales costs should be owed by the supplier. A numerical example is cited to illustrate the results and its significant features. Finally, to study the effect of changes of demand parameters, deterioration, inflation and managing cost on supplier and the retailer’s profit, a sensitivity analysis is presented numerically.

An Integrated Vendor-Buyer Model with Uncertain Lead Time, Life Time under Inflation and Variable Holding Cost

2011 ◽  
Vol 2 (3) ◽  
pp. 54-63 ◽  
Author(s):  
S. R. Singh ◽  
Diksha Bhatia
Keyword(s):  
Lead Time ◽  
Life Time ◽  
Time Value Of Money ◽  
Time Value ◽  
Deterioration Rate ◽  
Holding Cost ◽  
Variable Holding Cost ◽  
Value Of Money ◽  
Unsatisfied Demand ◽  
Shortage Costs

This study considers the problem of a vendor which supplies an item to the buyer with imprecise partial backlogging rate of unsatisfied demand and non instantaneous deterioration rate considering variable holding cost, the effect of inflation and time value of money. The supplier’s lead time is a stochastic function of his managing cost. The extra costs incurred by the retailer due to the uncertain lead time in terms of shortage costs or lost sales costs should be owed by the supplier. A numerical example is cited to illustrate the results and its significant features. Finally, to study the effect of changes of demand parameters, deterioration, inflation and managing cost on supplier and the retailer’s profit, a sensitivity analysis is presented numerically.

An Integrated Vendor - Buyer Model with Uncertain Lead Time, Life Time under Inflation and Variable Holding Cost

2011 ◽  
Vol 2 (4) ◽  
pp. 87-98
Author(s):  
S.R. Singh ◽  
Diksha Bhatia
Keyword(s):  
Lead Time ◽  
Life Time ◽  
Time Value Of Money ◽  
Time Value ◽  
Deterioration Rate ◽  
Stochastic Function ◽  
Holding Cost ◽  
Variable Holding Cost ◽  
Value Of Money ◽  
Unsatisfied Demand

This paper considers the problem of a vendor which supplies an item to the buyer with imprecise partial backlogging rate of unsatisfied demand and non instantaneous deterioration rate considering variable holding cost, the effect of inflation and time value of money. Supplier’s lead time is a stochastic function of his managing cost. The extra costs incurred on the retailer due to the uncertain lead time in terms of shortages costs or lost sales costs should be owed by the supplier. A numerical example is cited to illustrate the results and its significant features. Finally, to study the effect of changes of demand parameters, deterioration, inflation and managing cost on supplier and the retailer’s profit, a sensitivity analysis is presented numerically.

scholarly journals Effect of Inflation and Variable Holding Cost on Life Time Inventory Model with Multi Variable Demand and Lost Sales

2020 ◽  
Vol 8 (5) ◽  
pp. 5513-5519
Keyword(s):  
Life Time ◽  
Inventory Model ◽  
Selling Price ◽  
Variable Demand ◽  
Time Value Of Money ◽  
Time Value ◽  
Demand Rate ◽  
Holding Cost ◽  
Variable Holding Cost ◽  
Value Of Money

This paper analyses an inventory model for life time declining item with variable carrying rate and multi variable demand rate. In this model, the consumption rate depending on selling price as well as displayed stock and when the shortage occurs only on selling price of the manufactured article. Moreover, in this model the deterioration is taken time dependent, which is non-instantaneous in nature. In this study we also consider a very realistic concept of variable carrying rate in which the carrying rate per unit per period to be a function of the time used up in storage. This model is firm for minimizing the average total rate per unit period under the effect of inflation and time value of money. Numerical examples are used to illustrate the wished-for model and a sensitivity analysis is passed out to study the effect of different constraints

A Time Dependent Order Level Inventory Model for Beta Deterioration in Two Warehouse Systems

2015 ◽  
Vol 6 (2) ◽  
pp. 53-69 ◽  
Author(s):  
Soumendra Kumar Patra ◽  
Tapan Kumar Lenka ◽  
Er. Purna Chandra Ratha
Keyword(s):  
The Other ◽  
Time Dependent ◽  
Inventory Problem ◽  
Time Value Of Money ◽  
Continuous Release ◽  
Time Value ◽  
Distribution Form ◽  
Deterioration Rate ◽  
Demand Rate ◽  
Value Of Money

An inventory problem for a deteriorating item having two separate warehouses is developed under time value of money, whereby one is an own warehouse (OW) of finite dimension(s) and the other is rented warehouse (RW) of infinite dimension(s). Deterioration rate of items in the two warehouses may be different, which is time dependent and deterioration is in the mean beta distribution form. In this study, shortages and complete backlogging have been considered as the other items, whereby the demand rate of items is linear with time in OW and the same is linear with price in case of RW. Also, the stocks of RW transported to OW in continuous release pattern.

A Time Dependent Order Level Inventory Model for Beta Deterioration in Two Warehouse Systems

2018 ◽  
pp. 528-545
Author(s):  
Soumendra Kumar Patra ◽  
Tapan Kumar Lenka ◽  
Er. Purna Chandra Ratha
Keyword(s):  
The Other ◽  
Time Dependent ◽  
Inventory Problem ◽  
Time Value Of Money ◽  
Continuous Release ◽  
Time Value ◽  
Distribution Form ◽  
Deterioration Rate ◽  
Demand Rate ◽  
Value Of Money

An inventory problem for a deteriorating item having two separate warehouses is developed under time value of money, whereby one is an own warehouse (OW) of finite dimension(s) and the other is rented warehouse (RW) of infinite dimension(s). Deterioration rate of items in the two warehouses may be different, which is time dependent and deterioration is in the mean beta distribution form. In this study, shortages and complete backlogging have been considered as the other items, whereby the demand rate of items is linear with time in OW and the same is linear with price in case of RW. Also, the stocks of RW transported to OW in continuous release pattern.

scholarly journals Continuous review inventory models under time value of money and crashable lead time consideration

2011 ◽  
Vol 21 (2) ◽  
pp. 293-306 ◽  
Author(s):  
Kuo-Chen Hung
Keyword(s):  
Sensitivity Analysis ◽  
Lead Time ◽  
Traditional Approach ◽  
Optimal Solution ◽  
Time Factors ◽  
Optimal Order ◽  
Simple Method ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money

A stock is an asset if it can react to economic and seasonal influences in the management of the current assets. The financial manager must calculate the input of funds to the stock intelligently and the amount of money cycled through stocks, taking into account the time factors in the future. The purpose of this paper is to propose an inventory model considering issues of crash cost and current value. The sensitivity analysis of each parameter, in this research, differs from the traditional approach. We utilize a course of deduction with sound mathematics to develop several lemmas and one theorem to estimate optimal solutions. This study first tries to find the optimal order quantity at all lengths of lead time with components crashed at their minimum duration. Second, a simple method to locate the optimal solution unlike traditional sensitivity analysis is developed. Finally, some numerical examples are given to illustrate all lemmas and the theorem in the solution algorithm.

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