Pricing Policy in an Inventory Model with Green Level Dependent Demand for a Deteriorating Item

Hakim, M. A.; Hezam, Ibrahim M.; Alrasheedi, Adel Fahad; Gwak, Jeonghwan

doi:10.3390/su14084646

Cited by 10 publications

(2 citation statements)

References 62 publications

(70 reference statements)

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“…A novel multi-objective memetic algorithm was also developed to address their proposed problem. Abdul Hakim et al ( 2022 ) presented an inventory model for the pricing policy deteriorating. Their proposed model considers linear selling prices and nonlinear green level-dependent demand.…”

Section: Literature Reviewmentioning

confidence: 99%

Combination of pricing and inventory policies for deteriorating products with sustainability considerations

Edalatpour

Al-e-hashem

Fathollahi-Fard

2023

Environ Dev Sustain

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Economic, environmental, and social criteria are all being taken into consideration simultaneously when determining pricing policies or inventory levels in sustainable production management. The combination of pricing and inventory policies is an important source of leverage for the efficient management of perishable products. This paper, among the first studies, proposes the problem of devising optimal pricing and inventory management decisions simultaneously where the environmental and social criteria are contributed for perishable complementary products replenished and sold by the same company. This study considers two interrelated price-sensitive linear demand functions to consider the possibility of shortage with both budget and warehouse capacity constraints. Another contribution of the proposed model is to consider an upper bound for environmental pollution and a lower bound for job opportunities as the constraints to the model. As a complex optimization model, the challenge of complexity is addressed by a heuristic algorithm for finding an optimal solution. After an extensive analysis using numerical examples, some managerial insights are concluded from the results. One finding from these analyses confirms that the total capacity of the warehouse, the total available budget, carbon emissions, and variable job opportunities have a high impact on the optimal solution to find a balance between sustainability criteria for making pricing and inventory policies.

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Section: Literature Reviewmentioning

confidence: 99%

Combination of pricing and inventory policies for deteriorating products with sustainability considerations

Edalatpour

Al-e-hashem

Fathollahi-Fard

2023

Environ Dev Sustain

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“…The green level for a green manufacturing system was introduced by Akhtar et al [18] into the demand and production cost function. Recently, Hakim et al [19] studied an inventory model where the nonlinear demand rate depends on the green level and selling price.…”

Section: Recent Advancement In Inventory Modelingmentioning

confidence: 99%

A Learning-Based Optimal Decision Scenario for an Inventory Problem under a Price Discount Policy

Momena

Rahaman

Haque

et al. 2023

Systems

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This paper aims to design an inventory model for a retail enterprise with a profit maximization objective using the opportunity for a price discount facility given by a supplier. In the profit maximization objective, the demand should be increased. The demand can be boosted by lowering the selling price. However, lowering the selling price may not always give the best profit. Impreciseness plays a vital role during such decision-making. The decision-making and managerial activities may be imprecise due to some decision variables. For instance, the selling price may not be deterministic. A vague selling price will make the retail decision imprecise. To achieve this goal, the retailer must minimize impreciseness as much as possible. Learning through repetition may be a practical approach in this regard. This paper investigates the impact of fuzzy impreciseness and triangular dense fuzzy setting, which dilutes the impreciseness involved with managerial decisions. Based on the mentioned objectives, this article considers an inventory model with price-dependent demand and time and a purchasing cost-dependent holding cost in an uncertain phenomenon. This paper incorporates the all-units discount policy into the unit purchase cost according to the order quantity. In this paper, the sense of learning is accounted for using a dense fuzzy set by considering the unit selling price as a triangular dense fuzzy number to lessen the impreciseness in the model. Four fuzzy optimization methods are used to obtain the usual extreme profit when searching for the optimal purchasing cost and sale price. It is perceived from the numerical outcomes that a dense fuzzy environment contributes the best results compared to a crisp and general fuzzy environment. Managerial insights from this paper are that learning from repeated dealing activities contributes to enhancing profitability by diluting impreciseness about the selling price and demand rate and taking the best opportunity from the discount facility while purchasing.

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Optimal decisions for green products with advanced payment scheme and selling price‐dependent demand under interval uncertainty

Ali,

Shaikh,

Hezam

et al. 2024

Math Methods in App Sciences

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In the current competitive market, green products are becoming more and more in demand across all customer demographics due to environmental contamination. Consequently, this has a direct impact on the notable rise in product demand. Conversely, a product cannot be used or repurposed if its maximum useful life has already elapsed. Therefore, the product's maximum lifespan plays a crucial role in inventory management. Advance payment is a critical component of the supplier–retailer relationship for a seasonal product with high demand. By integrating these issues, an inventory model for perishable goods is created, wherein the demand for the good is impacted by both its selling price and its green level. The model also includes linearly time‐dependent holding costs. According to this model, product greenness has an increasing effect on per‐unit costs. Different numerical examples are studied for supporting this model. Optimality of the objective function is shown graphically as well as numerically with the help of MATHEMATICA software. Finally, a fruitful conclusion is reached after performing a sensitivity analysis and visually depicting the impact of changing various factors.

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Pricing Policy in an Inventory Model with Green Level Dependent Demand for a Deteriorating Item

Cited by 10 publications

References 62 publications

Combination of pricing and inventory policies for deteriorating products with sustainability considerations

Combination of pricing and inventory policies for deteriorating products with sustainability considerations

A Learning-Based Optimal Decision Scenario for an Inventory Problem under a Price Discount Policy

Optimal decisions for green products with advanced payment scheme and selling price‐dependent demand under interval uncertainty

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