An EPQ Model of Deteriorating Items under Partial Trade Credit Financing and Demand Declining Market in Crisp and Fuzzy Environment

Majumder, Pinki; Bera, Uttam Kumar; Maiti, Manoranjan

doi:10.1016/j.procs.2015.03.154

Cited by 16 publications

(6 citation statements)

References 8 publications

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“…They also added the cash discount payment scheme and assumed that the retailer will provide a full trade credit to his/her good credit customer and request his/her bad credit customers to pay for the items as soon as receiving them. Majumder et al (2015) studied an EPQ model under trade credit when demand is in decline and fuzzy. They derived an optimal cycle time to minimize the total average cost.…”

Section: Trade Creditmentioning

confidence: 99%

Optimal pricing and ordering policies for perishable products under advance-cash-credit payment scheme

et al. 2019

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Recently, market globalization and competition have forced companies to find alternative means to boost sales and revenue. The use of the cash flow is increasingly becoming a viable alternative for managers to improve their company's profitability in a supply chain. In today's business transactions, a supplier usually asks a manufacturer to pay via the advance-cash-credit (ACC) payment scheme if the number of goods procured is high. Additionally, product perishability has been considered in an economic production quantity (EPQ) model since it is a real phenomenon. The present work develops an EPQ model for perishable products under the ACC payment scheme. The objective of the proposed model is to determine the optimal selling price and cycle time while maximizing profit under the ACC payment scheme using a discounted cash flow analysis. A nonlinear optimization algorithm is also proposed to solve the problem. In addition, some numerical examples are employed to illustrate the solution approach and show the concavity of the present value of the total annual profit in terms of both selling price and cycle time. The numerical results show that our proposal algorithm could be applied well to solve the problems. In addition, a sensitivity analysis is conducted to obtain some managerial insights. For example, if the impact of advance payment on procurement cost is relatively smaller than that of cash payment, then it is more profitable for the manufacturer to ask for a cash payment than to receive an advance payment and vice versa.

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Section: Trade Creditmentioning

confidence: 99%

Optimal pricing and ordering policies for perishable products under advance-cash-credit payment scheme

et al. 2019

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“…Definition 9 (weighted sum method [28]). This method can be interpreted by some positive weights or priority assigned to the objective criterion by the decision maker.…”

Section: Preliminariesmentioning

confidence: 99%

“…Zolfagharinia and Isotupa [27] pointed out some flaws in the simulation model and some of the formulae for inventory level and ordering quantity. Majumder et al [28] formulated an EPQ model for deteriorating items under partial trade credit policy with crisp and fuzzy demand. They have used weighted sum method to convert a multiobjective to a single objective and the model was solved by Generalized Reduced Gradient method.…”

Section: Introductionmentioning

confidence: 99%

A Novel Method for Optimal Solution of Fuzzy Chance Constraint Single-Period Inventory Model

Sahoo

Dash

2016

Advances in Fuzzy Systems

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A method is proposed for solving single-period inventory fuzzy probabilistic model (SPIFPM) with fuzzy demand and fuzzy storage space under a chance constraint. Our objective is to maximize the total profit for both overstock and understock situations, where the demandD~jfor each productjin the objective function is considered as a fuzzy random variable (FRV) and with the available storage space areaW~, which is also a FRV under normal distribution and exponential distribution. Initially we used the weighted sum method to consider both overstock and understock situations. Then the fuzziness of the model is removed by ranking function method and the randomness of the model is removed by chance constrained programming problem, which is a deterministic nonlinear programming problem (NLPP) model. Finally this NLPP is solved by using LINGO software. To validate and to demonstrate the results of the proposed model, numerical examples are given.

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“…After that, many researchers have extended the traditional inventory models in the last few decades. For example, Hu and Liu (2010), Pasandideh et al (2010), Sarkar and Chakrabarti (2011) and Wee et al (2014) extended the study to consider shortage costs, Hu and Liu (2010), Kreng and Tan (2011), Mahata (2011Mahata ( , 2012 and Majumder et al (2015) assumed permissible delay payment, and Mahata (2011Mahata ( , 2012, Majumder et al (2015), Pal, Sana and Chaudhuri (2014), Pal, Mahapatra and Samanta (2014) and Sarkar and Chakrabarti (2011) considered deteriorating items. Efficient management of production and inventory decisions is the backbone for maintaining smooth flow in a supply chain system.…”

mentioning

confidence: 99%

“…Zhou et al (2015) developed an EPQ inventory model for imperfect quality items with quantity discount. Majumder et al (2015) considered an EPQ inventory model for deteriorating items in partial trade credit and declining demand, both in crisp and fuzzy environments. They assumed that the demand is modelled with triangular fuzzy numbers.…”

mentioning

confidence: 99%

A comparative study on economic production quantity (EPQ) model under space constraint with different kinds of data

Yazdi

Kaviani

Sarfaraz

et al. 2019

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Purpose The purpose of this paper is to develop a multi-item economic production quantity (EPQ) strategy under grey environment and space constraint. Since the “demand” cannot be predicted with certainty, it is assumed that data behave under grey environment and compare the proposed inventory model with other studies using crisp or fuzzy environments. Design/methodology/approach This paper is to optimise the cycle time and total cost of the multi-item EPQ inventory model. For this purpose, the Lagrangian coefficient is used to solve the constrained optimisation problem. The grey relational analysis approach and grey data are applied in developing the EPQ inventory model. Findings The results are compared with the analysis using crisp and fuzzy data. Sensitivity analysis is done to illustrate the effect of parameter variations on the optimal solution. The results of the study demonstrate that crisp data outperform the other two data in all scales problems in terms of cycle time and cost; grey data perform better in all scales problems than fuzzy data. Originality/value The contribution of this research is the use of grey data in developing the EPQ inventory model with space constraint.

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An EPQ Model of Deteriorating Items under Partial Trade Credit Financing and Demand Declining Market in Crisp and Fuzzy Environment

Cited by 16 publications

References 8 publications

Optimal pricing and ordering policies for perishable products under advance-cash-credit payment scheme

Optimal pricing and ordering policies for perishable products under advance-cash-credit payment scheme

A Novel Method for Optimal Solution of Fuzzy Chance Constraint Single-Period Inventory Model

A comparative study on economic production quantity (EPQ) model under space constraint with different kinds of data

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