Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model

Saren, Sharmila; Sarkar, Biswajit; Bachar, Raj Kumar

doi:10.3390/inventions5030050

Cited by 16 publications

(7 citation statements)

References 61 publications

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“…Some items may have a random demand [41]. Recently, Saren et al [42] studied the application of the price-discount policy for deteriorating products to attract more customers, while Mashud et al [30] investigated a synergy between the selling price and promotion effort. Over the years, pricing strategies have caught the attention of business owners.…”

Section: Inventory Model With Defective and Deteriorating Productsmentioning

confidence: 99%

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

et al. 2020

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Maintaining product quality and environmental performance are emerging concerns in modern competitive and transparent businesses. Many retailers separate perfect products from imperfect ones to ensure product quality and endeavor to achieve carbon dioxide (CO2) reduction through green technology investments and sustainable inventory planning. Product deterioration often badly hampers the retailing business; hence, suitable preservation technologies are used. In this study, we examined the optimization model of the selling price, investment, and replenishment planning to maximize the total profit. The proposed model considered the effect of a greater deterioration rate and discount price of imperfect products. Due to the high uncertainty in demand, a realistic holding cost was deliberated with a variable and constant part. Every time the retailer transports purchased items, greenhouse gases (GHGs), including CO2, are produced. Government regulations on CO2 minimization and customer awareness for greener products stimulate retailers to invest in energy-efficient green technology. This study simultaneously showed a harmonious relationship among the attributes of preservation technology, green technology investment, and discounts on defective items. Theoretical derivations were performed with numerical analysis.

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Section: Inventory Model With Defective and Deteriorating Productsmentioning

confidence: 99%

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

et al. 2020

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“…Tayal et al [26] presented a two-storage model under shortages for deteriorating items with different demands. Saren et al [27] discussed discount policies in inventory. Halim et al [28] presented an inventory model for deteriorating items considering two types of demands, where the first demand is a nonlinear price demand, and the second is a linear stock-dependent demand.…”

Section: Inventory Models Based On Deteriorationmentioning

confidence: 99%

An Imperfect Production Inventory Model for Instantaneous Deteriorating Items with Preservation Investment Under Inflation on Time Value of Money

Padiyar,

Chandra Kuraie,

Makholia

et al. 2024

Contemp. Math.

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Effective inventory management is crucial for businesses dealing with deteriorating items, where demand is influenced not only by traditional factors but also dependent on the selling price. This research paper proposes a comprehensive inventory model that considers the dynamic nature of demand for deteriorating items and incorporates the impact of inflation on the time value of money, all within the context of an imperfect production and screening process. To reduce the waste of products, the proposed model uses a rework process to convert imperfect items into perfect ones. Additionally, this study incorporates preservation technology investment to alleviate the rate of deterioration under partially backlogged shortages. The incorporation of an imperfect production process further enhances the model’s practical applicability by addressing real-world scenarios where production may not always be flawless. The study employs mathematical modeling and optimization techniques to derive optimal ordering policies that balance the conflicting objectives of minimizing costs. To validate the model, numerical analysis has been performed, and the convexity of the total cost function has been shown graphically and analytically using MATHEMATICA software. Sensitivity analyses are conducted to assess the robustness of the proposed model under varying parameters, providing valuable insights for decision-makers.

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“…Recently, under the supposition of non-linear holding cost, a model is constructed in [38], and also an upstream trade credit policy is considered. In [39], applying the various price-discount policy is proposed under permissible delay in payments.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages

Jani

Betheja

Chaudhari³

et al. 2021

Mathematics

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In particular business transactions, the supplier usually provides an admissible delay in settlement to its vendor to encourage further sales. Additionally, the demand for the commodity is inversely proportional to the function of the sales price, which is non-linear and, in some situations, a holding cost rises over time. Moreover, many goods often deteriorate consistently and shall not be sold after their expiration dates. This study analyses a model for perishable products with a maximum life span with price-dependent demand and trade credit by assimilating these variations and under the supposition of time-varying holding cost. Furthermore, to diminish the rate of deterioration, investment for preservation technology is often taken into account beforehand. Based on real-life circumstances, shortages are admitted and backlogged partially, with an exponential rise in wait time before the new good emerges. The key ambition is to calculate the optimum investment under preservation, sales price, and cycle time using the classical optimization algorithm to maximize the vendor’s net profit. Additionally, to clarify the outcomes, the numerical illustrations are addressed, and the sensitivity analysis of significant parameters is eventually implemented.

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Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model

Cited by 16 publications

References 61 publications

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

An Imperfect Production Inventory Model for Instantaneous Deteriorating Items with Preservation Investment Under Inflation on Time Value of Money

Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages

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