Pricing for seasonal deteriorating products with price- and ramp-type time-dependent demand

Wang, Chuanxu; Huang, Rongbing

doi:10.1016/j.cie.2014.09.005

Cited by 31 publications

(6 citation statements)

References 18 publications

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“…Dye [19] considered a logic over an infinite time horizon with allowable back-ordering. Similar papers were developed by Panda et al [20], Tsao and Sheen [21], Lin et al [22], Dye and Ouyang [23], Wang and Lin [24], Ghoreishi et al [25], Soni and Patel [26], Srivastava and Gupta [27], Wang and Huang [28], Bai et al [29], Bhunia et al [30], Rabbani et al [ 31], Indrajitsingha et al [32,33]. Recently one work was developed by Rahamann and Duary [34] to handle the fluctuating customer demand (selling price dependent).…”

Section: Introductionsupporting

confidence: 54%

An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

Indrajitsingha¹,

Raula²,

Samanta

et al. 2021

Walailak J Sci & Tech

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A pricing factor plays a dominant role in consumer behavior in most countries affected by the COVID19 pandemic. People have lost their job while others renegotiated for low-paying jobs during this pandemic. Thus, this article aims to develop a viable model to consider various aspects of the COVID19 pandemic. Here, we develop an optimal ordering quantity inventory model of deteriorating items, which are still in demand depending upon the selling price of the product. The items are assumed to be non-instantaneous deteriorating. The shortage is allowed in lead time and is partially backlogged. A solution procedure is presented to determine an optimal cycle, order quantity, and total average cost. A realistic numerical example is given to validate the proposed model by changing different systems of parameters, where sensitivity analysis has been carried out. The effectiveness of the system has been observed through graphical representation. HIGHLIGHTS The study considers the inventory model for non-instantaneous deteriorating items. Selling price dependent demand is incorporated. The shortage is allowed in lead time and is partially backlogged. Theoretical results have been formed to characterize the optimal solutions. The effect of key parameters is studies rigorously. GRAPHICAL ABSTRACT

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Section: Introductionsupporting

confidence: 54%

An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

Indrajitsingha¹,

Raula²,

Samanta

et al. 2021

Walailak J Sci & Tech

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“…In the existing literature, research in the field of deteriorating items or perishable goods has been extensive. For detailed reviews in this research area, the reader is referred to the works of Bakker et al ( 2012 ), Pahl and Voß ( 2014 ), Wang and Huang ( 2014 ), and Chen and Xiao ( 2017 ). In reality, health-conscious consumers can easily evaluate the freshness of a perishable product by reading its expiration date.…”

Section: Introductionmentioning

confidence: 99%

Lot-sizing and pricing decisions for perishable products under three-echelon supply chains when demand depends on price and stock-age

Teng

Chang

2021

Ann Oper Res

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In economics, a demand curve is almost always downward-sloping, reflecting the willingness of consumers to purchase more of the commodity at lower price levels. In addition, the demand for seasonal products (such as fashion apparels, beverages etc.) or perishable goods (such as meat and seafood, dairy products, fruit and vegetables, pharmaceutical products, and chemicals) decreases over time. Hence, demand is a function of price and stock-age. With large business transactions, a seller usually demands a down payment (i.e., an advance payment) to ensure that the buyer is making a serious offer. Conversely, a buyer frequently requests to hold a fraction of total purchase cost until the business transaction is completed and satisfactory (i.e., a credit payment). As a result, a combination of advance, cash, and credit (ACC) payments is commonly used in business transactions. This paper develops a supplier–retailer–customer chain in which the retailer receives an upstream ACC payment from the supplier while in return offers a down-stream cash-credit (some in cash and the remainder in credit) payment to customers, the demand is influenced by the combined effect of selling price and stock age, and the deterioration rate is time-varying. The retailer must determine optimal unit price and replenishment time to maximize the present value of total profit, which is strictly concave in selling price and strictly pseudo-concave in replenishment time. Finally, a sensitivity analysis is performed, and several managerial insights are obtained. For instance, an increase in the fraction of advance payment forces the retailer to raise selling price.

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“…Wang and Huang [12] proposed a model toward pricing and inventory control for seasonal deteriorating products with time dependent demand and fixed selling season. Single period pricing and inventory management in the presence of strategic customers is reviewed by Du et al [13].…”

Section: Introductionmentioning

confidence: 99%

Coordination of Pricing and Order Quantity for Two Replaceable and Seasonal Products

Rasouli

Amin-Naseri

Kamalabadi

et al. 2020

IJE

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This paper deals with the coordination of pricing and order quantity decisions for two seasonal and substitutable goods in one firm. We assume that the customers are price sensitive and they are willing to buy the cheaper products, which is known as one way and customers-based price driven substitution. First, a mathematical model is developed for one firm, which contains two replaceable products considering seasonality. The model aims to maximize the profit by determining optimal dynamic prices, order quantities and the number of periods for both of the products. Then, we show that the objective function is strictly concave of price and has a unique maximum solution. Next, an exact algorithm based on the Karush Kuhn Tucker (KKT) conditions is presented to determine the optimal decisions. Finally, a numerical example accompanied by sensitivity analysis on key parameters is developed to illustrate the efficiency of solution procedure and the algorithm.

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Pricing for seasonal deteriorating products with price- and ramp-type time-dependent demand

Cited by 31 publications

References 18 publications

An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

Lot-sizing and pricing decisions for perishable products under three-echelon supply chains when demand depends on price and stock-age

Coordination of Pricing and Order Quantity for Two Replaceable and Seasonal Products

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