Retailer's optimal ordering policy in the EOQ model with imperfect‐quality items under limited storage capacity and permissible delay

Liao, Jui‐Jung; Huang, Kuo-Nan; Chung, Kun‐Jen; Lin, Shy‐Der; Ting, Pin‐Shou; Srivástava, H. M.

doi:10.1002/mma.5225

Cited by 20 publications

(12 citation statements)

References 42 publications

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“…As the recycling process is shown in the model, a proper waste management (Tsai et al 2021) could be another important discussion that is missing in this study. Some marketing strategies, for instance, discount on imperfect items (Mashud et al 2020a), trade credit financing (Liao et al 2018(Liao et al , 2020Srivastava et al 2018;Mashud et al 2021aMashud et al , 2021d can be implemented in the proposed model to make it more lucrative to the practitioners. Other imperfect process in both the EOQ and EPQ models (Lin and Srivastava 2015;Srivastava et al 2021) can also be consider as an interesting extension.…”

Section: Discussionmentioning

confidence: 99%

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

AlArjani

Miah

Uddin

et al. 2021

JRFM

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Recycling of products has a great impact on contemporary sustainable business strategies. In this study, a sustainable recycling process in a production-inventory model for an imperfect production system with a fixed ratio of recyclable defective products is introduced. The piecewise constant demand rates of the non-defective items are considered under production run-time, production off-time with positive stock, and production off-time with shortages under varying conditions. Based on the production process, two cases are studied using this model. The first case does not consider recycling processes, while the second case picks up all defective items before sending these items to recycling during the production off-time; the recycled items are added to the main inventory. The aim of this study is to minimize the total cost and identify the optimal order quantity. The manufacturing process with the recycling process provides a better result compared to without recycling in the first case. Some theoretical derivations are developed to enunciate the objective function using the classical optimization technique. To validate the proposed study, sensitivity analysis is performed, and numerical examples are given. Finally, some managerial insights and the scope of future research are provided.

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Section: Discussionmentioning

confidence: 99%

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

AlArjani

Miah

Uddin

et al. 2021

JRFM

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“…The objective is to obtain the optimal value of the length period and the percent of period duration in which the inventory level is positive. Some imperfect production models with trade credit have been studied, in recent years, by (among others) Wang et al [53], Alamri et al [54], Palanivel and Uthayakumar [55], Aghili and Hoseinabadi [56], Tsao et al [57,58], Khanna et al [59], Liao et al [60], Kazemi et al [61], Liao et al [62], Mashud et al [63], and Srivastava et al [64].…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory Models for Non-Instantaneous Deteriorating Items with Expiration Dates and Imperfect Quality under Hybrid Payment Policy in the Three-Level Supply Chain

et al. 2021

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This article considers an inventory model for non-instantaneous deteriorating items with expiration dates, such as seasonal items, first-hand vegetables, and fruits. Interestingly, an inspection will be performed to manage the quality of the items during the state of no deterioration because it is difficult to purchase items with 100% perfection. Additionally, we assume that the upstream member has the power of controlling or influencing downstream members’ decisions. That is, the supplier asks the retailer for a partial advance payment to avoid cancellation of orders and offers them a credit payment to stimulate sales; in turn, the customer must pay some cash when placing an order and pay the remainder in credit for the retailer. The goal of this article is to determine an optimal replenishment cycle and the total annual cost function, so we explore the functional properties of the total annual cost function and show that the total annual cost function is convex. Theoretical analysis of the optimal properties shows the existence and uniqueness of the optimal solution. Then, we obtain simple and easy solution procedures for the inventory system. Moreover, numerical analysis of the inventory model is conducted, and the corresponding examples are considered with a view to illustrating the application of the supply chain model that we have investigated in this article. Finally, in the concluding section, we have not only provided the motivation and the need for our usages of mathematical analytic solution procedures based upon the convexity, monotonicity (increasing and decreasing) and differentiability properties of the object function (that is, the total annual cost function), which involve some symmetry aspects of the object function, but we have also indicated the limitations and shortcomings in our investigation, which will naturally lead to some potential directions for further research on the supply chain model, which we have considered and mathematically analyzed in this article.

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“…Chung et al 20 gave a unified presentation of inventory models under quantity discounts, trade credits, and cash discounts in the supply chain management. Liao et al 21 gave retailer's optimal ordering policy in the EOQ model with imperfect‐quality items under limited storage capacity and delay in payments. Srivastava et al 22 considered two levels of trade credit in the supply chain system.…”

Section: Introductionmentioning

confidence: 99%

Economic ordering policy for non‐instantaneous deteriorating items with price and advertisement dependent demand and permissible delay in payment under inflation

Udayakumar

Geetha

Sana

2020

Math Methods in App Sciences

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In recent years, offering credit period by the supplier to the retailer has become a usual strategy. Hence, in the present work, an inventory model for noninstantaneous deteriorating items is framed considering money inflation and time discounting, where a permissible delay period is offered by the supplier as an alternative to price discount. Further, the salvage value associated with deteriorated units is considered, and the shortages allowed are partially backlogged. Focus is made on obtaining the optimal replenishment policy by minimizing the total inventory cost. This is achieved by developing mathematical theorems that determines the existence and the uniqueness of the optimal solutions. Moreover, computational algorithm is designed and illustrated using numerical examples and analysis. Various managerial insights obtained from the analysis are also highlighted.

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Retailer's optimal ordering policy in the EOQ model with imperfect‐quality items under limited storage capacity and permissible delay

Cited by 20 publications

References 42 publications

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages

Inventory Models for Non-Instantaneous Deteriorating Items with Expiration Dates and Imperfect Quality under Hybrid Payment Policy in the Three-Level Supply Chain

Economic ordering policy for non‐instantaneous deteriorating items with price and advertisement dependent demand and permissible delay in payment under inflation

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