Concurrent pricing and lot sizing for make-to-order contract production

Banerjee, Avijit

doi:10.1016/j.ijpe.2004.06.017

Cited by 26 publications

(7 citation statements)

References 11 publications

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“…Wee [9] and Wee and Law [10] incorporated the effect of different deterioration types on selling policy. Banerjee [11] studied the integrated inventory model with a contractual agreement and pricing. For different streams of pricing literature, discounts are commonly used by wholesalers or manufacturers.…”

Section: Incentives and Price Effectmentioning

confidence: 99%

Retailer’s replenishment policy for deteriorating item in response to future cost increase and incentive-dependent sale

Chung

Wee

Chen

2013

Mathematical and Computer Modelling

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a b s t r a c tIn a competitive business environment, enterprises usually try to maximize their revenues by providing attractive incentives. This paper develops a model to simultaneously determine the inventory and pricing policies of a retailer with contractual agreement. The replenishment plan, pricing policy, and schedule of the special sale plan with future purchasing price increase and incentive demand are considered in a deteriorating item inventory model with a finite planning horizon. We provide a comprehensive analysis to derive the optimal special sale period, the optimal number of deliveries and the optimal retailer's selling price. A numerical example is presented to demonstrate the theory. The results show that demand rate, price and other incentive policies are critical in managing deteriorating inventories.

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Section: Incentives and Price Effectmentioning

confidence: 99%

Retailer’s replenishment policy for deteriorating item in response to future cost increase and incentive-dependent sale

Chung

Wee

Chen

2013

Mathematical and Computer Modelling

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“…Under the condition of pricesensitive demand, Weng (1995) considered the supplier's quantity discount from the perspective of reducing the supplier's operating cost and increasing the buyer's demand. Recently, there is a large body of literature on the problem of coordination of replenishment strategies and pricing policies, for example Federgruen and Heching (1999), Khouja (2000), Lau and Lau (2003), Maddah and Bish (2004), Banerjee (2005), Chen and Simchi-Levi (2006) and You and Hsieh (2007), etc. However, none of them consider the replenishment policy with a trade credit.…”

Section: Literature Reviewmentioning

confidence: 99%

Functions of several variables analysis applied in inventory management

Janková¹,

Novotná²,

Varyšová³

2013

Acta Univ. Agric. Silvic. Mendelianae Brun.

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JANKOVÁ MARTINA, NOVOTNÁ VERONIKA, VARYŠOVÁ TEREZA: Functions of several variables analysis applied in inventory management. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, LXI, No. 7, pp. 2221-2227 In many cases a retailer is not capable of settling an invoice immediately upon receiving it and is given an option by the supplier to settle the invoice within a defi nite period. The retailer can sell the goods before the deadline, accumulate revenue and earn interest. If the retailer is not able to meet his obligations within the deadline, he is charged an interest. This paper introduces a newly constructed model which enables a retailer to set an optimal price of goods under permissible delay in payments, and to determine the maximum term of payment. The model is based on the assumption of timedependent demand and has been developed for non-deteriorating goods. The paper further analyzes a situation in which the retailer sell all the goods in time, and a situation in which the deadline was not met. Theoretical results are demonstrated by an illustrative example. The authors of the paper used methods of analysis and synthesis, and the method of mathematical analysis (diff erential calculus of multivariable functions, solution of ordinary diff erential equations). The model suggested in the paper can be expanded in the future. One option is generalization of the model, allowing for the lack of goods, bulk discounts, etc.inventory management, EOQ model, non-deteriorating goods, local extremes, multivariable functions Traditional inventory models assume that a retailer pays for the goods the moment they come into inventory. Nowadays, however, it is becoming a common practice that a supplier off ers a retailer the option to pay for the goods with a certain delay. The retailer may, before the end of the period, sell the goods, accumulate revenue and earn interest. If the retailer is not able to meet his obligations by the end of the credit period, he is charged an interest. In other words -a supplier provides a retailer with an interest-free credit for a period set in the contract. This paper introduces a newly designed model which enables a retailer to set an optimal price of goods under permissible delay in payments, and to determine the maximum term of payment. Aim of the paperThe paper's aim is to set up a mathematical model which enables a retailer to fi x (based on the knowledge of certain parameters) the optimum selling price per an item of goods and to determine the maximum interval during which goods can be sold at a profi t. The model is based on the assumption of time-dependent demand and is developed for non-deteriorating goods. Further assumption is that the inventory is depleted only by demand.The scientifi c aim is to verify if such an optimizing problem can be solved. The authors of the paper used analytic and synthetic methods and the method of mathematical analysis (diff erential calculus of multivariable functions, solution of ordinary diff erential equations).Th...

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“…Polatoglu (1991) proposed a model in which the pricing and procurement decisions were determined simultaneously. Later, Wee (1997), Abad (1994Abad ( , 1996Abad ( , 2001, Wee and Law (2001), Reyniers (2001), Ray and Jewkes (2004), Banerjee (2005), and Yang et al (2009) considered price-dependent demand in their models. Among the recent works, Atamer et al (2013) concentrated on production and pricing decisions in a closed loop supply chain for the reusable containers with the key assumption of considering two different types of brand new and recovered products.…”

Section: Introductionmentioning

confidence: 99%

Channel coordination with price discount mechanism under price‐sensitive market demand

Sarkar

Tiwari

Wee

et al. 2019

Int Trans Operational Res

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This paper considers a two-echelon supply chain with single vendor single buyer for trading a single product. The buyer's demand has been assumed to be price-sensitive. We have assumed three-level inspection at the vendor's end in order to maintain good quality of the items delivered to the buyer. We have developed models for both decentralized and centralized scenarios and have determined the optimal solution using the basic concepts of analytic geometry and algebra. In addition, we have proposed a price discount mechanism, where the vendor has provided discounts on the purchase cost to the buyer against the buyer's (increased) order quantity. Finally, in order to illustrate and validate the proposed model, a numerical example and sensitivity analysis is carried out, which has provided some important managerial implications. It has been observed from the numerical study that the proposed price discount policy coordinates the supply chain and has improved the profitability of the supply chain and its members. considering the entire supply chain's profit. However, it seems hypothetical that only a single decision maker has been handling and managing the entire supply chain efficiently. Therefore, to improve the efficiency of a supply chain, significant coordination is required. Hence, achieving effective coordination between the vendor and the buyer has become an important managerial concern as well as an important research issue. To increase sales volume, the vendor often gives efforts that may influence the buyer's behavior. For example, the vendor may offer various discounts so that the buyer orders more than his economic order quantity, which directly maximizes channel profit. Proper demand analysis is another important aspect of improving supply chain profit. Factors such as price of the commodity, after-sales service, advertisement, and quality of the product have been directly influencing market demand of the product. For example, in the telecommunication sector, Apple is well known for its product quality and high price, whereas Samsung and Lenovo are renowned for their new features at relatively lower prices. Customers who prefer quality over cost will naturally go for Apple's products. Similarly, customers who prefer features and lower prices would prefer Samsung or Lenovo products. Product quality depends on the manufacturer's production processes and also on the raw material quality. Therefore, if the manufacturer wants to produce high-quality products, both manufacturing process and raw material quality play an important role. However, higher quality components may involve higher prices. It is, therefore, necessary to make a balance between price and quality in order to optimize the profit. In this study, we have incorporated price dependency of demand into our supply chain model. The production-delivery supply chain models have often assumed that the quality of product is constantly perfect. However, in practice, this assumption for any production model is rarely satisfied as a production system ofte...

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Concurrent pricing and lot sizing for make-to-order contract production

Cited by 26 publications

References 11 publications

Retailer’s replenishment policy for deteriorating item in response to future cost increase and incentive-dependent sale

Retailer’s replenishment policy for deteriorating item in response to future cost increase and incentive-dependent sale

Functions of several variables analysis applied in inventory management

Channel coordination with price discount mechanism under price‐sensitive market demand

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