Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates

Shah, Nita H.; Soni, Hardik; Patel, Kamlesh A.

doi:10.1016/j.omega.2012.03.002

Cited by 166 publications

(84 citation statements)

References 50 publications

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“…Therefore, the problem is solved applying the following search procedure which is similar to ones used in Wu et al (2009) and Shah et al (2013) as well. We first prove that for given values of  , 0 p and T there exist a unique optimal value of A.…”

Section: Solution Methodologymentioning

confidence: 99%

“…Demand was considered as a linear function of price, exponential function of time and quadratic function of the cost of the advertisement. Shah et al (2013) incorporated advertisement into the demand model as well. In their paper advertisement is modeled as the frequency of advertisement in each replenishment cycle.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The values of the parameters of the problem are defined in Table 2. Identical parameters of model are taken from Shah et al (2013) and adopted to our model. The expanded results of the executed procedure of the proposed…”

Section: Algorithmmentioning

confidence: 99%

See 2 more Smart Citations

Optimal dynamic pricing and replenishment policies for deteriorating items

Rabbani¹,

Zia²,

Rafiei³

2014

10.5267/j.ijiec

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Marketing strategies and proper inventory replenishment policies are often incorporated by enterprises to stimulate demand and maximize profit. The aim of this paper is to represent an integrated model for dynamic pricing and inventory control of deteriorating items. To reflect the dynamic characteristic of the problem, the selling price is defined as a time-dependent function of the initial selling price and the discount rate. In this regard, the price is exponentially discounted to compensate negative impact of the deterioration. The planning horizon is assumed to be infinite and the deterioration rate is time-dependent. In addition to price, the demand rate is dependent on advertisement as a powerful marketing tool. Several theoretical results and an iterative solution algorithm are developed to provide the optimal solution. Finally, to show validity of the model and illustrate the solution procedure, numerical results are presented.

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Section: Solution Methodologymentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Optimal dynamic pricing and replenishment policies for deteriorating items

Rabbani¹,

Zia²,

Rafiei³

2014

10.5267/j.ijiec

View full text Add to dashboard Cite

show abstract

“…There have been many extensions after Wu et al (2006) model by applying different assumptions. Shah et al (2013) considered marketing policy for non-instantaneous with generalized type deterioration, permitting no shortages and demand rate is power function of price and frequency of advertisement. Palanivel and Uthayakumar (2014) established model for non-instantaneous deteriorating products with time dependent two variable Weibull deterioration rate, where demand rate is power function of time and permitting partial backlogging.…”

Section: Introductionmentioning

confidence: 99%

Vendor managed inventory model for non-instantaneous deteriorating product with quadratic demand allowing partial backlogging

Soni¹,

Gor²,

Patel³

2018

10.5267/j.uscm

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Vendor managed inventory system is vendor centric inventory system in which all inventory decisions are taken by vendor rather than buyer. This study considers non-instantaneous deteriorating items with generalized type time dependent deterioration rate when demand rate is quadratic function of time and shortages are allowed with partial backlogging. The paper aims to compare traditional inventory system and vendor managed inventory system by analyzing total cost function. To validate the model, numerical example and sensitivity analysis are performed. The analysis shows that vendor managed inventory is more beneficial compare with the traditional inventory system.

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“…Geetha and Uthayakumar (2010) extended 's model incorporating time-dependent backlogging rate. Other related work in this area are , Ouyang et al (2008), Chung (2009), Wu et al (2009), Jaggi andVerma (2010), Chang et al (2010), Geetha et al (2010), Soni et al (2012), Kamalabadi (2012a, 2012b), Shah et al (2013), Dye and Hsieh (2012). Dye and Hsieh (2013) considered different inventory problems for noninstantaneous deteriorating items.…”

Section: Introductionmentioning

confidence: 99%

Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand under permissible delay in payments: A new approach

Jaggi¹,

Sharma²,

Tiwari³

2015

10.5267/j.ijiec

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In the existing literature of inventory modeling under the conditions of permissible delay in payments, researchers have assumed that the retailers have to settle their accounts at the end of credit period i.e. supplier accept only full amount at the end of the credit period. However in reality, supplier may either accept the partial amount at the end of the credit period and unpaid balance subsequently or the full amount at a fix point of time after the expiry of the credit period, if the retailer finances the inventory from the supplier itself. Further, in the classical deteriorating inventory models, the common unrealistic assumption is that all the items start to deteriorate as soon as they arrive in the system. However, in realistic environment, it is observed that there are several non-instantaneous deteriorating items that have a shelf life and start to deteriorate after a time lag, like dry fruits, potatoes, yams and even some fruits and vegetables etc. Considering the importance of above mentioned facts, the present study formulates a fuzzy inventory model for non-instantaneous deteriorating items under conditions of permissible delay in payments. The paper discusses all the possible cases which may arise and yet not considered in the previous inventory models under permissible delay in payments. Further, this paper also considers pricedependent demand and the possibility of higher interest earn rate than interest payable rate. The objective of this study is to determine the optimal decision policies for the retailer which maximizes the total profit. Finally, the numerical examples are solved by using the proposed algorithm to show the validity of the model followed by the sensitivity analysis.

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Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates

Cited by 166 publications

References 50 publications

Optimal dynamic pricing and replenishment policies for deteriorating items

Optimal dynamic pricing and replenishment policies for deteriorating items

Vendor managed inventory model for non-instantaneous deteriorating product with quadratic demand allowing partial backlogging

Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand under permissible delay in payments: A new approach

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