Ordering Policy for Deteriorating Items with Short Shelf Life Based on Lateral Transshipment

2011 ◽  
Vol 204-210 ◽  
pp. 915-918
Author(s):  
Xin Yi Bu ◽  
Fang Zhou Teng
Keyword(s):  
Supply Chain ◽  
Shelf Life ◽  
Conceptual Model ◽  
Planning Horizon ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Inventory Level ◽  
Ordering Policy ◽  
Demand Rate ◽  
Lateral Transshipment

It is usually observed in the supermarkets that display of deteriorating items. These items are with short shelf life and difficult to be transported and stored. A supply chain conceptual model which consists of one supplier and two retailers is structured. Based on analysis of deteriorating inventory model in exist, the transshipment between the two retailers is added into the supply chain conceptual model and a deteriorating model is developed in this paper which can reflect more accurately the relation among inventory level, demand rate, deteriorating rate and lateral transshipment rate. The ordering policy taking into account the shelf life constraint is investigated with two last ordering opportunities on condition that the planning horizon can be modified based on the lateral transshipment. At last, the conclusion implies that the ordering policy for deteriorating items with short shelf life based on the lateral transshipment can improve the profit for the retailer.

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.

Two Warehouse Inventory Model for Deteriorating Items with Ramp Type Demand and Price Discount on Backorders

2021 ◽  
Vol 13 (2) ◽  
pp. 455-465
Author(s):  
S. Chandra
Keyword(s):  
Fruits And Vegetables ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Price Discount ◽  
Total Cost ◽  
Deterioration Rate ◽  
Ordering Policy ◽  
Demand Rate ◽  
Holding Cost ◽  
Ramp Type Demand

In this paper, a two warehouse inventory model for deteriorating items is studied with ramp type demand rate. Holding cost of rented warehouse has higher than the owned warehouse due to better preservation facilities in rented warehouse. Due to the improved services offer in rented warehouse, the deterioration rate in rented warehouse is less than deterioration rate in owned warehouse. When stock on hand is zero, the inventory manager offers a price discount to customers who are willing to backorder their demand. The study includes some features that are likely to be associated with certain types of inventory, like inventory of seasonal fruits and vegetables, newly launched fashion items, etc. The optimum ordering policy and the optimum discount offered for each backorder are determined by minimizing the total cost in a replenishment interval.

scholarly journals A partial backlogging inventory model for non-instantaneous deteriorating items with stock-dependent consumption rate under inflation

2010 ◽  
Vol 20 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Jinh Chang ◽  
Feng Lin
Keyword(s):  
Solution Process ◽  
Optimal Solution ◽  
Planning Horizon ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Optimal Order ◽  
Partial Backlogging ◽  
Demand Rate ◽  
Dependent Demand Rate ◽  
Dependent Demand

In this paper, we derive a partial backlogging inventory model for noninstantaneous deteriorating items with stock-dependent demand rate under inflation over a finite planning horizon. We propose a mathematical model and theorem to find minimum total relevant cost and optimal order quantity. Numerical examples are used to illustrate the developed model and the solution process. Finally, a sensitivity analysis of the optimal solution with respect to system parameters is carried out.

scholarly journals Optimal replenishment policy for fuzzy inventory model with deteriorating items and allowable shortages under inflationary conditions

2016 ◽  
Vol 26 (4) ◽  
pp. 507-526
Author(s):  
Chandra Jaggi ◽  
Sarla Pareek ◽  
Aditi Khanna ◽  
N Nidhi
Keyword(s):  
Net Present Value ◽  
Sufficient Conditions ◽  
Optimal Solution ◽  
Planning Horizon ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Distance Method ◽  
Ordering Policy ◽  
Total Profit ◽  
The Impact

This study develops an inventory model to determine ordering policy for deteriorating items with constant demand rate under inflationary condition over a fixed planning horizon. Shortages are allowed and are partially backlogged. In today?s wobbling economy, especially for long term investment, the effects of inflation cannot be disregarded as uncertainty about future inflation may influence the ordering policy. Therefore, in this paper a fuzzy model is developed that fuzzify the inflation rate, discount rate, deterioration rate, and backlogging parameter by using triangular fuzzy numbers to represent the uncertainty. For Defuzzification, the well known signed distance method is employed to find the total profit over the planning horizon. The objective of the study is to derive the optimal number of cycles and their optimal length so to maximize the net present value of the total profit over a fixed planning horizon. The necessary and sufficient conditions for an optimal solution are characterized. An algorithm is proposed to find the optimal solution. Finally, the proposed model has been validated with numerical example. Sensitivity analysis has been performed to study the impact of various parameters on the optimal solution, and some important managerial implications are presented.

scholarly journals Analysis of the effects of Lead-Time variation and Lateral Transshipment insertion in a Supply Chain Network

2021 ◽  
Author(s):  
Mohamed Salim Amri Sakhri ◽  
Mounira Tlili ◽  
Ouajdi Korbaa
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Planning Horizon ◽  
Inventory Level ◽  
Inventory Routing ◽  
Routing Problem ◽  
Network Cost ◽  
Lateral Transshipment ◽  
The Impact ◽  
Number Of Customers

Abstract In a supply chain, inventory is the single largest source of costs for a company. This is due to the various physical and informational activities that accompany inventory management, primarily the holding and transportation of inventory. Companies are looking to streamline these activities and minimize the associated costs. One of the most coveted models to jointly solve these two problems is the Inventory Routing Problem (IRP), which will be the focus of this study. This paper addresses the case of a deterministic replenishment demand in a distribution network consisting of a supplier and a number of customers to be served by a single vehicle over a finite planning horizon. We will first study the impact of increasing supplier lead times on network costs. Then, we will study the effects of the Lateral Transshipment (LT) technique on the overall network cost. A mathematical model is developed and solved by an exact method. The results obtained will show that LT is an effective tool capable of improving the total network cost and balancing the customers’ inventory level.

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