Optimal dynamic pricing and replenishment policies for deteriorating items

Rabbani, Masoud; Zia, Nadia Pourmohammad; Rafiei, Hamed

doi:10.5267/j.ijiec.2014.6.002

Cited by 8 publications

(5 citation statements)

References 31 publications

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“…In contrast to growth, deterioration is a rich area of academic research that has attracted numerous studies since its introduction. In this regard, the paper refrains from covering the literature body of the deterioration, and interested readers are referred to Rabbani et al (2014), Rabbani et al (2015), Janssen et al (2016), Rabbani et al (2016), Rabbani et al (2017), Shi et al (2019), Acevedo-Ojeda et al (2019), Taleizadeh et al (2019, Agi andSoni (2020), andAl-Amin et al (2020) for studies in this area. Rezaei (2014) addressed the problem for the first time by developing an EOQ model for the growing items.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic order quantity for growing items in the presence of mortality

Pourmohammadzia

2022

Journal of Supply Chain Management Science

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Growth depicts the behavior of a class of inventories whose weight and size increase during their storage. Although the phenomenon is fundamental in the food industry, it still faces a lack of academic heed. Our research sheds new light on this area by illustrating the inventory system of a rearing farm that breeds fast-growing newborn animals (like broiler chickens) and finally slaughters them. The items are prone to different diseases during their growth which can lead to their death. This is modeled by applying a mortality rate that can be controlled by investing in preventive practices. The slaughtered items (such as chicken meat) that fall into the category of deteriorating inventory are quality controlled and exploited to satisfy demand. An analytic solution approach is developed to derive the optimal order quantity of newborn animals, their growth period, and action level for preventive practices. Experimental results show that choosing a hatchery with the best purchasing cost should be the first priority of the system to manage its costs. It is also depicted that the breeding period is not influenced by all input parameters of the model, and the nature of the items plays a key role in this regard.

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Section: Literature Reviewmentioning

confidence: 99%

Economic order quantity for growing items in the presence of mortality

Pourmohammadzia

2022

Journal of Supply Chain Management Science

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“…Dynamic pricing is a well-known strategy to mitigate the negative impact of deterioration. Three general approaches exist for dynamic pricing: Treating price as a control variable (Feng et al, 2015;Li et al, 2015), multi-period pricing (Chen et al, 2018;Dye et al, 2017), and dynamic discounting-markdown (Rabbani et al, 2014;Chen and Chen 2020). We incorporate the dynamic discounting scheme where the selling price is defined as a timedependent function of the initial price and the discount rate.…”

Section: The Inventory Model Of the Retailermentioning

confidence: 99%

Dynamic pricing and inventory control policies in a food supply chain of growing and deteriorating items

2021

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Revenue and inventory management play a crucial role in the operational efficiency of food supply chains. The current study investigates dynamic pricing and inventory control policies in a two-level Food Supply Chain (FSC) of growing and deteriorating inventory that involves a rearing farm as the supplier and a retailer where these slaughtered items are prone to deterioration. The rearing farm breeds newborn animals, then slaughters them and sends the items to the retailer. The negative impact of overbreeding is taken into account to preserve the items' quality and decrease food waste on the supply side. The model is analyzed under decentralized and centralized supply chain scenarios with a profit-sharing contract as the coordination tool in the centralized case. An analytic solution approach based on non-linear convex programming is developed to solve the problem. The developed structure is illustrated through experimental results with a real estimated growth function for broiler chickens. Sensitivity analysis is carried out to investigate the impact of different input parameters. It is shown that the centralized supply chain scenario not only enhances the profit of the supplier and the retailer but also is more desirable for the customers as the selling price of the items decreases in this setting. The results provide decision-makers of each echelon with insights into the features of the studied FSC, including their most influential input parameters, the areas that require further attention, and managerial suggestions under different scenarios. KeywordsInventory control • Dynamic pricing • Food supply chain • Growth • Deterioration IntroductionAbout two-thirds of food wastes occur during the processes of Food Supply Chains (FSCs), which has raised severe criticism against these chains' performance (Zhong et al., 2017). On the other hand, food quality is critical as it directly interfaces with health and safety

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“…The studies on growing inventory are very confined compared to that of the deteriorating inventory. There exists a massive body of literature on revenue and inventory management of deteriorating items (interested readers are referred to Rabbani et al (2014), Janssen et al (2016), Rabbani et al (2016), Rabbani et al (2017), Taleizadeh et al (2019), and Al-Amin et al ( 2020)). This suggests that, due to similarities shared, one can expect a high deal of new research developments on growing inventory in upcoming years.…”

Section: Review Of the Literaturementioning

confidence: 99%

A review of the research developments on inventory management of growing items

Pourmohammad-Zia

2021

Journal of Supply Chain Management Science

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Growth outlines the behavior of a class of inventories whose weight and size increase during their storage. Fast-growing young animals such as broiler chickens, ducks, and calves are examples of this class, prevalent in many food industries. Despite their presence in various food supply chains, studying these items in the context of inventory control, supply chain, and operations management is still in its early stage. This study provides the essential grounds of the knowledge in this area and further reviews the related research developments to provide the researchers with clear insights into the structure of the current literature, its main gaps, and promising directions for future research. In order to guarantee the comprehensiveness of our review, we have incorporated a systematic search procedure to identify the relevant literature. Through this procedure, 23 papers were identified that were used in our further analysis throughout the paper. Our investigations show that the literature on growing inventories is very confined, and this body of the literature gets even more limited when it comes to the problems in the context of the supply chain. Our findings introduce the topic as a promising direction in inventory and supply chain management with high potential for insightful future research works.

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Optimal dynamic pricing and replenishment policies for deteriorating items

Cited by 8 publications

References 31 publications

Economic order quantity for growing items in the presence of mortality

Economic order quantity for growing items in the presence of mortality

Dynamic pricing and inventory control policies in a food supply chain of growing and deteriorating items

A review of the research developments on inventory management of growing items

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