In this paper, an optimal replenishment inventory policy for imperfect quality items is presented with a selling price-dependent demand under inflationary conditions using a discounted cash flow (DCF) approach. Due to the presence of defectives in the system, all items go through a 100% inspection process. However, the screening process is also considered to be imperfect and involves errors, namely Type-I and Type-II. In addition, shortages are allowed and are partially backlogged. An optimal solution for the proposed model is derived by maximizing the expected profit function by jointly optimizing three decision variables: selling price, order quantity, and backorder level. To validate the theoretical results, a numerical example along with comprehensive sensitivity analysis is offered. The model has pertinence in industries like textiles, electronics, furniture, footwear, automobiles, and plastics.
Accepté le :
Première publication :
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DOI : 10.1051/ro/2018102
Keywords: Inventory, Screening errors, Time value of money, Partial Backlogging, Selling price-dependent demand
@article{RO_2020__54_1_287_0,
author = {Khanna, Aditi and Kishore, Aakanksha and Sarkar, Biswajit and Jaggi, Chandra K.},
title = {Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {287--306},
year = {2020},
publisher = {EDP Sciences},
volume = {54},
number = {1},
doi = {10.1051/ro/2018102},
mrnumber = {4062455},
zbl = {1437.90012},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2018102/}
}
TY - JOUR AU - Khanna, Aditi AU - Kishore, Aakanksha AU - Sarkar, Biswajit AU - Jaggi, Chandra K. TI - Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2020 SP - 287 EP - 306 VL - 54 IS - 1 PB - EDP Sciences UR - https://www.numdam.org/articles/10.1051/ro/2018102/ DO - 10.1051/ro/2018102 LA - en ID - RO_2020__54_1_287_0 ER -
%0 Journal Article %A Khanna, Aditi %A Kishore, Aakanksha %A Sarkar, Biswajit %A Jaggi, Chandra K. %T Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation %J RAIRO - Operations Research - Recherche Opérationnelle %D 2020 %P 287-306 %V 54 %N 1 %I EDP Sciences %U https://www.numdam.org/articles/10.1051/ro/2018102/ %R 10.1051/ro/2018102 %G en %F RO_2020__54_1_287_0
Khanna, Aditi; Kishore, Aakanksha; Sarkar, Biswajit; Jaggi, Chandra K. Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 1, pp. 287-306. doi: 10.1051/ro/2018102
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