The effect of advance payment with discount facility on supply decisions of deteriorating products whose demand is both price and stock dependent

Khan, Md. Mobarak Hossain; Shaikh, Ali Akbar; Panda, Gobinda Chandra; Konstantaras, Ioannis; Cárdenas–Barrón, Leopoldo Eduardo

doi:10.1111/itor.12733

Cited by 73 publications

(32 citation statements)

References 46 publications

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“…This model offers trade credit for a retailer to obtain optimal solution; theorems are evaluated together with a solution procedure. Khan et al [8] introduced a model for deteriorating products for which the demand is both stock and price dependent. Using this, the paper is formulated for the case of advance payment.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages

Shah

Rabari

Patel

2021

YUGOSLAV J OPERATION

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Our model deals with the stock-dependent demand as exhibiting huge volume of commodities leads to more costumers and augment the trading of the goods. As some goods like vegetables, fruits, medicines deteriorate after a period of time, resulting in economical and financial losses, we took this factor into consideration and included a constant deterioration rate, controlled by suitable preservation technologies. Preservation technology investments are made for the valuable business as it helps to decrease the rate of deterioration. Our model allows shortages, and back-ordering is permissible to manage the loss that occurs due to perishable objects and shortages. The objectives are to find the optimal cycle time, preservation technology cost, and positive inventory time. The paper also proves the convexity of total cost through graphs with respect to decision variables. A sensitivity analysis of decision variables with respect to different inventory parameters is carried out.

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Section: Literature Reviewmentioning

confidence: 99%

Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages

Shah

Rabari

Patel

2021

YUGOSLAV J OPERATION

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“…(i) This paper extends the idea of Teng et al [38] by incorporating a realistic holding cost and discount incentive for multiple prepayments. (ii) This model provides a new idea in discount policy with multiple prepayments which will extend the idea of instant cash discount on purchase cost anticipated in Khan et al [20]. (iii) The proposed model will simultaneously examine pricing effects with an advance payment system and a product life cycle.…”

Section: Introduction and Literature Reviewmentioning

confidence: 97%

“…Teng et al [38] considered advance payment with a maximum products life cycle. Recently, Taleizadeh et al [36] developed an incremental discount model while Khan et al [19,20] provided a cash discount for full purchase cost payment. Khan et al [18,21] and Shaikh et al [33] considered advance payment for a two-warehouse problem with partial backordering.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

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Joint pricing deteriorating inventory model considering product life cycle and advance payment with a discount facility

et al. 2021

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The product life cycle of a deteriorating product is an important consideration in inventory management. This paper simultaneously investigates the optimum pricing and inventory decisions considering product life cycles under price-dependent demand and advance payment systems with a discount facility. A time-dependent holding cost is also introduced. The objective is to carefully balance the critical decision variables in order to maximize the total profit. Furthermore, the theoretical analysis validates the concavity of the profit function. A numerical example and sensitivity analysis are provided to show the characteristics of the model. The study shows that an advanced payment period, installment numbers, product’s maximum life cycle, purchasing cost and demand function significantly influence the total profit. This inventory model with a known product lifetime and advance payments can provide management insights to inventory manager in his/her strategic planning.

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“…They formulated a two-storage inventory model with advance payment under three different situations according to different possibilities of starting times of deterioration in both warehouses. Observing that suppliers give different kinds of benefits to retailers due to advance payment, Khan et al [17] studied a problem under both cases of advance payment (full or partial), an inventory model for deteriorating products where shortages are allowed and demand function is considered as price and stock dependent.…”

Section: Introductionmentioning

confidence: 99%

Single-item lot-based supplying and batch production under a bilateral capacity reservation: A partnership structure

Rezaei

Behnamian

2021

RAIRO-Oper. Res.

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This paper studies a single-item lot-based supplying and batch production under a bilateral capacity reservation contract based on a partnership structure in which some suppliers, a manufacturer, and a third-party logistics provider are connected through long-term cooperation agreements. This configures a partnership supply chain and promotes the manufacturer’s performance in a continuous improvement cycle. Since in this paper, it is assumed that the products are perishable, there is not any inventory storage. Moreover, due to a settled contract, the final products are delivered by third-party logistics corporate providing vehicles according to the products’ features, their expiration time lengths, customers’ demands and other considerations in each period. Thus, the delivery batch size, which is equal to the vehicle capacity in a full truckload mode, is targeted for the manufacturer operations resulting in a dynamic improvement environment. In this problem, respect to the performance level of the manufacturer, in each period, a certain capacity is reserved at each selected supplier level according to the appointed batch deliveries. Here, in addition to the ordinary costs incurred due to ordering and delivery processes, some penalties are imposed for orders/delivers exceeding or falling behind the reserved capacity. After investigating the computational complexity of the problem, we propose three dynamic programming algorithm as well. Finally, numerical results and some potential future researches are presented.

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The effect of advance payment with discount facility on supply decisions of deteriorating products whose demand is both price and stock dependent

Cited by 73 publications

References 46 publications

Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages

Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages

Joint pricing deteriorating inventory model considering product life cycle and advance payment with a discount facility

Single-item lot-based supplying and batch production under a bilateral capacity reservation: A partnership structure

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