Retailer Ordering Policy for Deteriorating Items with Initial Inspection and Allowable Shortage Under the Condition of Permissible Delay in Payments

2012 ◽  
Vol 1 (1) ◽  
pp. 64-79 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Mandeep Mittal
Keyword(s):  
Inventory Model ◽  
Inventory System ◽  
Deteriorating Items ◽  
Permissible Delay In Payments ◽  
Numerical Example ◽  
Ordering Policy ◽  
Delay In Payments ◽  
The Impact ◽  
Single Commodity

While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature, the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present paper investigates the impact of interest earned from revenue generated after fulfilling the stock out at the start of the cycle on a single commodity inventory model with shortages for deteriorating item, in which the whole lot goes through an inspection on arrival before entering into inventory system, under the conditions of permissible delay in payments. The results have been demonstrated with the help of a numerical example using the tools of Matlab7.0.1.

Ordering Policy for Imperfect-Quality Deteriorating Items with Initial-Inspection and Allowable Shortage under the Condition of Permissible Delay in Payments

2014 ◽  
pp. 65-80
Author(s):  
Chandra K. Jaggi ◽  
Mandeep Mittal
Keyword(s):  
Inventory Model ◽  
Inventory System ◽  
Deteriorating Items ◽  
Defective Items ◽  
Permissible Delay In Payments ◽  
Imperfect Quality ◽  
Ordering Policy ◽  
Inspection Process ◽  
Delay In Payments ◽  
The Impact

While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature that the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present study investigates the impact of interest earned from revenue generated after fulfilling the stock out at the start of the cycle on a single commodity inventory model with shortages for deteriorating item, in which the whole lot goes through an inspection process on arrival before entering into inventory system, under the conditions of permissible delay in payments. After inspection, the non-defective items are retained to fulfill the demand and the defective items are returned to the supplier. The results have been demonstrated with the help of a numerical example using the tools of Matlab7.0.1.

Pricing and Replenishment Policies for Imperfect Quality Deteriorating Items under Inflation and Permissible Delay in Payments

2012 ◽  
pp. 170-185
Author(s):  
Chandra K. Jaggi ◽  
Satish K. Goel ◽  
Mandeep Mittal
Keyword(s):  
Planning Horizon ◽  
Deteriorating Items ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Discounted Cash Flow ◽  
Permissible Delay In Payments ◽  
Ordering Policy ◽  
Demand Rate ◽  
Delay In Payments ◽  
Almost All

Usually it is assumed that all items in a lot are of good quality, but in reality this assumption may not always be pertinent. Thus, the inspection of lots becomes essential in almost all organizations. Moreover, its role becomes more vital when the items are deteriorating in nature. Owing to this fact, this paper investigates the impact of initial inspection on retailer’s pricing and ordering policy for deteriorating items under inflation and permissible delay in payments using discounted cash flow approach over a finite planning horizon. Demand rate is assumed to be a function of selling price. The proposed model jointly optimizes the number of replenishments and price by maximizing the retailer’s total profit. Results have been demonstrated with the help of a numerical example, and sensitivity analyses are also presented to provide managerial insights into practice.

Pricing and Replenishment Policies for Imperfect Quality Deteriorating Items Under Inflation and Permissible Delay in Payments

2011 ◽  
Vol 2 (2) ◽  
pp. 20-35 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Satish K. Goel ◽  
Mandeep Mittal
Keyword(s):  
Planning Horizon ◽  
Deteriorating Items ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Discounted Cash Flow ◽  
Permissible Delay In Payments ◽  
Demand Rate ◽  
Delay In Payments ◽  
Almost All ◽  
The Impact

Usually it is assumed that all items in a lot are of good quality, but in reality this assumption may not always be pertinent. Thus, the inspection of lots becomes essential in almost all organizations. Moreover, its role becomes more vital when the items are deteriorating in nature. Owing to this fact, this paper investigates the impact of initial inspection on retailer’s pricing and ordering policy for deteriorating items under inflation and permissible delay in payments using discounted cash flow approach over a finite planning horizon. Demand rate is assumed to be a function of selling price. The proposed model jointly optimizes the number of replenishments and price by maximizing the retailer’s total profit. Results have been demonstrated with the help of a numerical example, and sensitivity analyses are also presented to provide managerial insights into practice.

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