Optimizing price, order quantity, and backordering level using a nonlinear holding cost and a power demand pattern

Cárdenas–Barrón, Leopoldo Eduardo; Mandal, Buddhadev; Sicilia, Joaquı́n; San-José, Luis A.; Abdul‐Jalbar, Beatriz

doi:10.1016/j.cor.2021.105339

Cited by 30 publications

(5 citation statements)

References 49 publications

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“…In the consumer goods supply chain, which involves a variety of commodities, the price of a product is an important factor afecting the purchasing behavior of consumers. At this point, customer demand played a crucial role in the pricing strategy of the product and led to the development of several classical theoretical models of customer demand, such as the single-product inventory model where the demand rate for a product is dependent on a single product shortage depending on factors such as price, time, and inventory [25] and the inventory system model with a dynamical demand model and items that allow for shortages [26]; with sales efort as a decision variable under the circumstances of demand uncertainty of the green dualchannel supply chain pricing and coordination strategy model [27]; a dual-channel supply chain pricing strategy model with green investment and sales efort when demand is uncertain [28]; under the low-price and high-price strategy, a two-stage analysis model of the proftable buyback strategy of the original equipment manufacturer (OEM) and the independent remanufacturer (IR) [29]; a model considering the cooperative versus noncooperative game with a decision model of manufacturer-retailer membership under two diferent scenarios of presence and absence of discounts [30]; a dual-channel inventory model considering retailers having ofine and online options to sell products [31]; and further extending and modifying Sana's production-inventory model to derive the optimal bufer inventory that minimises expected costs [32].…”

Section: Relevant Research On Demand-oriented Product Supplymentioning

confidence: 99%

Mathematical Modelling of B2C Consumer Product Supply Strategy Based on Nonessential Demand Pattern

Zhuo,

Chen,

Yan

2024

Journal of Mathematics

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The influence of consumer psychological effects on customer needs has become a normal state of product sales models in the consumer goods supply chain field. The literature lacks systematic research on the mechanism through which consumer psychological effects affect customer needs. On the basis of analyzing and sorting out the literature and viewpoints, this paper establishes a mathematical model to investigate how manufacturers design and plan product supply strategies based on nonessential demand patterns under three different sales models. Finally, by solving the mathematical model, the optimal production volume, the optimal commodity price, and the maximum profit that can be obtained by the manufacturer are obtained, and the correctness of the model is verified via numerical calculation. The study results explain the relationships among commodity costs, demand, and commodity pricing, which are significant for the study of consumer psychology and can further provide a beneficial reference for manufacturers in various industries.

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Section: Relevant Research On Demand-oriented Product Supplymentioning

confidence: 99%

Mathematical Modelling of B2C Consumer Product Supply Strategy Based on Nonessential Demand Pattern

Zhuo,

Chen,

Yan

2024

Journal of Mathematics

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“…The principal motivation behind the paper is to explore the ideal retailer's renewal choices for decaying things, including time-dependent interest for exhibiting more reasonable conditions inside financial request amount structures. Leopoldo [25] analyzed how the holding cost can play an indivisible role in production. For more explicitly, it increases with time since an extensive stretch of capacity requires more costly stockroom offices.…”

Section: Literature Reviewmentioning

confidence: 99%

An Investigation of a Supply Chain Model for Co-Ordination of Finished Products and Raw Materials in a Production System under Different Situations

et al. 2021

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In the production system, the production of a perfect item is essential for existing competitive market situations. To produce a perfect finished product, the quality of a raw material is a crucial issue of a production system. This paper has examined this issue with an insightful production-inventory model of the manufacturer of a deteriorating item selling goods to multiple markets with different selling seasons. We have provided an answer strategy to track down the optimal production plan for raw materials and the ideal creation plan for completed items. Transportation cost was incorporated for transporting the raw material. Marketing of the finished product is another crucial factor for selling products and earning revenues. The main objective of the present study is to adopt a production model in inventory for inferring request capacities for multi-item, multi-outlet circumstances. As of late, much accentuation has been given to the consideration of the control and support of creation inventories of disintegrating things. The demand rate is persistent and holding cost is a direct function of time. This paper has followed an analytical approach to diminish the entire inventory cost. Finally, a sensitivity analysis was performed to study the effect of changes of different parameters of the model on the optimal policy. Moreover, in order to approve the determined models, we have clarified mathematical models and examined affectability.

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“…Managing inventory under such imperfect items is an essential job for industry managers. How much to order and when to order while considering the possibility of defective items are important decisions, and many relevant inventory models are studied (Barron & Baron, 2020;Cárdenas-Barrón et al, 2014;Chang et al, 2005). Especially, some (Q, r ) models were developed under the consideration of shortages cost (Khan et al, 2011;Maddah et al, 2010;Manna & Chaudhuri, 2006).…”

Section: Introductionmentioning

confidence: 99%

“…(ii) The traditional (Q, r ) inventory model deals with constant or deterministic demand (Widyadana & Wee, 2010). Some inventory and production models were recently developed under the consideration of selling price-dependent demand (Cárdenas-Barrón et al, 2021), and some production models were developed under quality-dependent demand (Dey et al, 2021b). However, a service-dependent (Q, r ) inventory model is not sufficiently discussed.…”

Section: Introductionmentioning

confidence: 99%

Intelligent inventory management with autonomation and service strategy

Dey

Seok

2022

J Intell Manuf

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The manufacturer's service to the customer is one of the critical factors in maximizing profit. This study proposes the innovative (Q, r ) inventory policy integrated with autonomated inspection and service strategy for service-dependent demand. First, an advanced autonomated inspection makes the product error-free. Therefore, this makes customers more satisfied and increases profit. The proposed model decides the optimal investment for such autonomated inspection. Second, three types of services are considered in the study: unpaid, partially paid, and fully paid services. Each type of service has a different service level and the amount of the customer's payment. Our model finds the optimal service strategy based on the variable conditions along with the optimal quantity and reorder level of inventory policy. Numerical analyses are made for different service strategies, along with a sensitivity analyses for various critical parameters. Results show that the full paid service is 84.88% beneficial compared to the unpaid service, and the autonomated inspection policy is 5.02% beneficial compared to the traditional ones. The increase in unit servicing costs always increases the profit of the company.

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Optimizing price, order quantity, and backordering level using a nonlinear holding cost and a power demand pattern

Cited by 30 publications

References 49 publications

Mathematical Modelling of B2C Consumer Product Supply Strategy Based on Nonessential Demand Pattern

Mathematical Modelling of B2C Consumer Product Supply Strategy Based on Nonessential Demand Pattern

An Investigation of a Supply Chain Model for Co-Ordination of Finished Products and Raw Materials in a Production System under Different Situations

Intelligent inventory management with autonomation and service strategy

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