scholarly journals Inventory Replenishment Policies for Two Successive Generations of Technology Products under Permissible Delay in Payments

2022 ◽  
Vol 15 (1) ◽  
pp. 0-0
Keyword(s):  
Product Life Cycle ◽  
Trade Credit ◽  
Numerical Illustration ◽  
Inventory Optimization ◽  
Technology Products ◽  
Managerial Implications ◽  
Trade Credits ◽  
Delay In Payments ◽  
Successive Generations ◽  
The Cost

In this age of digitalization, when every industry is undergoing technological disruption, there is a big role of digital gadgets and technology products. A key feature of these digital gadgets is the short length of the product life cycle, since the newer and more advanced generations of technologies are developed regularly to replace the earlier conventional technologies. The traditional EOQ models that assume a constant demand cannot be used here. This research paper formulates an inventory optimization model for the multi-generational products under the trade credits and the credit-linked and innovation diffusion dependent demand. The study also performs a numerical illustration of the proposed model, and establishes important dynamics among the key variables. It also performs the sensitivity analysis with the cost of credit and the trade credit period. The paper concludes with the managerial implications for the inventory practitioners and the possible areas of extension for this research in the future.

Optimal Policies for Items With Quadratic Demand and Time-Dependent Deterioration Under Two Echelon Trade Credits

2018 ◽  
pp. 32-43 ◽  
Author(s):  
Azharuddin Sarfuddin Shaikh ◽  
Poonam Prakash Mishra
Keyword(s):  
Trade Credit ◽  
Time Dependent ◽  
Decision Variable ◽  
Lot Size ◽  
Variable Sensitivity ◽  
Trade Credits ◽  
Total Profit ◽  
Holding Cost ◽  
Delay In Payments ◽  
Home Furnishing

In today's competitive and global business scenario there is always a race to boost demand of your product over others. This can be achieved by different means and allowing permissible delay in payments is one of them. Researchers have proposed number of inventory models with trade credit that actually help to understand effect of trade credit on total profit and overall demand. This paper proposes a two – echelon trade credit where retailer receives credit period from the manufacturer and offer it to end customers appropriately to raise demand. Proposed inventory model assumes quadratic demand and subjected to time dependent deterioration. Ordering cost is considered lot – size dependent whereas holding cost has been taken time dependent. In this model profit is maximized considering cycle time as a decision variable. Sensitivity analysis of crucial inventory parameters and numeric examples are discussed in detail. Outcome of this model can be applied to a huge range of products like readymade garments, fashion accessories, electronics, furniture and home furnishing products.

scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

A sustainable inventory system with the advanced payment policy and trade-credit strategy for a two-warehouse inventory system

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abu Hashan Md Mashud ◽  
Hui-Ming Wee ◽  
Biswajit Sarkar ◽  
Yu-Hua Chiang Li
Keyword(s):  
Trade Credit ◽  
Optimization Technique ◽  
Inventory Model ◽  
Inventory System ◽  
Selling Price ◽  
Content Type ◽  
Deterioration Rate ◽  
Trade Credits ◽  
Delay In Payments ◽  
Dependent Demand

Purpose This paper aims to consider a sustainable inventory model with price dependent demand, non-instantaneous deterioration rate, discount facility, partially backlogged shortages and advance and delay in payments for a two-warehouse system. Design/methodology/approach This model considered a non-instantaneous deterioration, which starts after a certain period with a constant rate. The deterioration rate in the rented warehouse is more compared to own warehouse. The proposed model focused on two things. The first one is to the benefits of the advance payments strategy and delayed payment for the retailer and supplier, where the two-warehouse system is available and the second one is using an appropriate discount facility on no of the installment to maximize the total profit. The classical optimization technique is used to solve the problem. Findings The combination of trade-credits and advance payments is initiated to provide more benefits to the retailer. The findings prove that advance payments, which are received from the retailer to the supplier are beneficial for the supplier, who can influence the demand increase because of higher lower selling prices. Decreasing the selling price is used as a catalyst to increase demand. It also extends the discount concept of Khan et al. (2019, 2019b). Research limitations/implications This model is limited by the fact that it does not consider variable deterioration. Therefore, the proposed inventory model could be extended by considering variable deterioration, as well as fully backlogged shortages and time-dependent demand function. Originality/value The study simultaneously considers a non-instantaneous deterioration inventory model, advance-payment, trade-credit for a sustainable two-warehouse inventory system. From the literature search to the best of knowledge no researcher has undergone this sort of study.

Adoption and Diffusion of Hi-Technology Product and Related Inventory Policies

2020 ◽  
Vol 12 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Gaurav Nagpal ◽  
Udayan Chanda
Keyword(s):  
Literature Review ◽  
Diffusion Of Innovation ◽  
Product Life Cycle ◽  
Future Research ◽  
Technology Generation ◽  
Inventory Optimization ◽  
Technology Products ◽  
Demand Models ◽  
Adoption And Diffusion ◽  
Short Product

The objective of this review article is to study the published research on the inventory modeling and optimization for substitutable technology products with a short product life cycle. This review explains the demand dynamics of technology generation products and how to administer supply chain management of this kind of products than any other functional products. The article does a review of the demand models proposed on the diffusion of innovation products, and then, moves on to the literature review of the multi-item inventory models, followed by the literature review of the inventory modeling of substitutable items. In order to ensure the quality, this study covers the review of the research papers mostly published in reputed SCI or ABDC rated journals. The study discovers that the research that has been done on the inventory optimization of multi generation technology products is not only rare but also very restrictive in its scope and assumptions. The study then proposes the directions for the future research.

Fuzzy Economic Production Quantity Model for Weibull Deteriorating Items with Ramp Type of Demand

2011 ◽  
Vol 2 (3) ◽  
pp. 55-90 ◽  
Author(s):  
R. Uthayakumar ◽  
M. Valliathal
Keyword(s):  
Deteriorating Items ◽  
Quantity Discounts ◽  
Setup Cost ◽  
Economic Production Quantity ◽  
Deterministic Demand ◽  
Economic Production ◽  
Holding Cost ◽  
Production Quantity ◽  
Delay In Payments ◽  
The Cost

This paper discusses an Economic Production Quantity model for Weibull deteriorating items over an infinite time horizon under fuzzy environment. Fuzziness is introduced by allowing the cost components such as setup cost, production cost, holding cost, shortage cost and opportunity cost due to lost sales to certain extent. Triangular fuzzy numbers are used to represent the mentioned costs. Optimum policies of the described models under fuzzy costs are derived. The proposed model can be extended in several ways. For instance, the deterministic demand function to stochastic fluctuating demand patterns could be considered. The model could also be generalized to allow for quantity discounts, as well as permissible delay in payments.

AN EOQ MODEL WITH LIMITED STORAGE CAPACITY UNDER TRADE CREDITS

2007 ◽  
Vol 24 (04) ◽  
pp. 575-592 ◽  
Author(s):  
LIANG-YUH OUYANG ◽  
KUN-SHAN WU ◽  
CHIH-TE YANG
Keyword(s):  
Storage Capacity ◽  
Optimal Solution ◽  
Inventory Systems ◽  
Simple Method ◽  
Eoq Model ◽  
Trade Credits ◽  
Cash Discount ◽  
Delay In Payments ◽  
Classical Economic ◽  
Theoretical Results

In the classical economic order quantity (EOQ) inventory model, it was assumed that the retailer must pay for the received items immediately. However, in practice, the supplier not only allows retailer to settle the account after a certain fixed period but also may offer a cash discount to encourage the retailer to pay for his purchases as soon as possible. On the other hand, it is common practice in most inventory systems to hold excess stocks in a rented warehouse whenever the storage capacity of the owned warehouse is insufficient. Therefore, the purpose of this paper is to establish an EOQ model with limited storage capacity, in which the supplier provides cash discount and permissible delay in payments for the retailer. In the model, we develop some useful theorems to characterize the optimal solution and provide a simple method to find the optimal replenishment cycle time and payment time. Finally, several numerical examples are given to illustrate the theoretical results and some managerial insights are also obtained.

ASSESSMENT OF THE RELATIONSHIP BETWEEN THE INNOVATION LEVEL AND THE PROCESS OF DISTRIBUTING GENERATIONS OF AN INDUSTRIAL PRODUCT

2021 ◽  
Vol 7 (1) ◽  
pp. 146-162
Author(s):  
Albert E. Brand ◽  
Vladimir N. KUTRUNOV ◽  
Yuriy E. YAKUBOVSKIY
Keyword(s):  
Research Literature ◽  
Industrial Product ◽  
Next Generation ◽  
Rate Of Spread ◽  
Modeling And Forecasting ◽  
Game Console ◽  
Mathematical Formalization ◽  
Successive Generations ◽  
The Cost ◽  
The Relationship

This article assesses the relationship between the level of innovation and the process of spreading generations of an industrial product among the consumers on the example of generations of a stationary game console from Sony. This work follows the scientific direction of modeling and forecasting the spread of innovations; it contains the results of the analysis of the dynamics in the change of successive generations of an industrial product. The relevance of the research topic lies in the increased competition between companies engaged in innovative activities. This results in the need to determine the reasonable directions of technical, technological, and market development of the developed innovations in the form of new and improved products. This study uses the mathematical model by F. Bass, supplemented by the provisions of T. Islam and N. Meade on the variability of consumer behavior of different generations. The conducted review of research literature has revealed an insufficient elaboration of the issue of a qualitative and quantitative assessment of the relationship between the rate of spread of generations and the changes made to them. The authors draw hypotheses about the independence of the market potentials of successive generations from each other and the dependence of the level of innovativeness of the next generation of industrial products on technological, consumer and marketing changes. As a set of changes, this article proposes parameters of the purchase price and the cost of operating each generation. The authors have tested the hypothesis on statistical data of generational sales for 1994-2019 using correlation analysis. The results have shown the absence of the influence of the market potentials of successive generations from each other, as well as the presence of a connection and its strength between the level of innovativeness of the next generation and the changes made in the generations. The data obtained can be used for further mathematical formalization of the influence of the level of innovativeness of generations on the process of their distribution.

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