An integrated production-inventory model for deteriorating items to evaluate JIT purchasing alliances

Pérez, Freddy; Torres, Fidel

doi:10.5267/j.ijiec.2018.5.001

Cited by 6 publications

(3 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In [9], a mathematical model for non-instantaneous perishable inventory under the investment in preservation technology is developed. Further, in [22], the influence of continuous deterioration in an inventory model to assess just-in-time agreement is analyzed. Recently, in [23], the pricing strategy for a perishable inventory with a non-instantaneous rate, where the demand is selling price and freshness dependent investigated.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

et al. 2022

View full text Add to dashboard Cite

Trade credit is generally used by businesses to obtain external funds. This article demonstrates an inventory system from the retailer’s point of view in which (1) the influence of trade credit on expanding small businesses and their consumers is the focus of this research, and (2) the retailer’s on-hand inventory follows the non-instantaneous deterioration. (3) To maximize profit, the demand is disclosed, which is based on not just the sales price, but also on cumulative demand, which indicates saturation and diffusion. (4) The product’s initial price and the permitted discount rate at the time of deterioration are considered to be time-dependent functions of the sales price. In the absence of deterioration, the item is sold at a constant rate, and whenever deterioration occurs, the sales price is assumed to be an exponential function of the discount variable. The main aim is to optimize the total profit of the retailer in terms of cycle time and sales price. The traditional algorithm of optimization is used to address the optimization problem. Finally, the theoretical results are validated by solving three numerical illustrations and conducting a sensitivity analysis of the main factors resulting from the following managerial implications: (1) credit period provides the maximum profit margin of any financing method, and (2) an increase in the initial rate of demand raises sales price while increasing overall profit significantly.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

et al. 2022

View full text Add to dashboard Cite

show abstract

“…Wee [17] proposed a production inventory model with partial backlogged shortages, and Mashud et al [10] considered different types of deterioration with shortages. Wee and Jong [18] examined the just-in-time (JIT) delivery strategy for deteriorating items in an integrated production-inventory model, while Perez and Torres [19] developed a multiple-delivery inventory model. Their models considered product deterioration and the time value of money with JIT delivery.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

et al. 2020

View full text Add to dashboard Cite

Product deterioration is a common phenomenon and is overlooked in most contemporary research on the newsboy problem. In this study, we have considered product deterioration in a production–inventory newsboy model based on multiple just-in-time (JIT) deliveries. This model is solved by a classical optimization technique for the manufacturer production size, wholesale price, replenishment plan, and retailer order policy using a distribution-free approach. Moreover, in order to improve business and entice more customers, a return policy and a post-sale warranty policy is adopted in the model. Theoretical development and numerical examples are provided to demonstrate the validity of this approach.

show abstract

“…Khan et al (2011) summarized the body of research that extended Salameh and Jaber's (2000) EOQ model for imperfect items. There are more works in this directions (Goyal & Szendrovits, 1986;Lee & Rosenblatt, 1987;Cheg, 1991;Hoque & Goyal, 2000;Goyal & Cardenas-Barron, 2002;Ertogral et al, 2007;Taleizadeh et al, 2012;Cheng et al, 2018;Prez & Torres, 2019;Despic et al, 2019Pamucar & Savin, 2020. In this paper, the production process is assumed to be imperfect; it produces a certain number of defective items as considered by Huang (2004).…”

Section: Literature Reviewmentioning

confidence: 99%

A two-echelon supply chain model with price and warranty dependent demand and pro-rata warranty policy under cost sharing contract

Samanta

Giri

2020

Decis. Mak. Appl. Manag. Eng.

View full text Add to dashboard Cite

In this article, a two-echelon supply chain model with a single-vendor a single-buyer is considered. The vendor's production process is imperfect and the market demand is assumed to be dependent on the buyer's selling price and warranty period. The vendor consents to return a definite portion of the buyer's purchase value, if any product is found defective within the length of warranty. The refund value or the warranty cost is considered as a function of the warranty period and the buyer's selling price of the item. This warranty cost is assumed to be fully borne by the vendor in the first model (Model I) while in the second model (Model II), it is assumed that the buyer agrees to bear a portion of the warranty cost. The proposed models are solved under decentralized scenario. We also derive and optimize the average total profit of the supply chain in order to obtain the optimal decisions of the centralized model. We consider a Stackelberg game between the vendor and the buyer in the decentralized scenario, where the vendor is assumed to be the leader and the buyer as the pursuer. Through numerical study, it is observed that, with respect to all the key decisions of the models, Model II provides better outcomes than Model I. Sensitivity analysis is also carried out to examine the impacts of changes of parameter-values on the optimum decisions.

show abstract

An integrated production-inventory model for deteriorating items to evaluate JIT purchasing alliances

Cited by 6 publications

References 22 publications

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

A two-echelon supply chain model with price and warranty dependent demand and pro-rata warranty policy under cost sharing contract

Contact Info

Product

Resources

About