In a perfectly transparent and competitive market, suppliers must provide a competitive pricing and service for their customers. The aim of this study is to provide an insight into how preservation technology and credit financing could be used both to reduce the deterioration rate as well as to provide flexible financing for retailers. The methodology is to optimize the cycle length, selling price, the amount of preservation technology and credit financing using inventory theory. The result derived is an optimal total profit per unit time for the system. Finally, using MATLAB 2017a, it is shown graphically that the profit function is concave. The sensitivity analysis is illustrated using Lingo 17. The study not only provides insights to business managers in making wise managerial decisions, it also enables them to weigh the pro and con of implementing preservation technology and credit financing.
Accepté le :
Première publication :
Publié le :
DOI : 10.1051/ro/2019095
Keywords: non-instantaneous deterioration, Price dependent demand, partial backlogging, preservation technology, trade credit
@article{RO_2021__55_S1_S51_0,
author = {Hashan Md Mashud, Abu and Wee, Hui-Ming and Huang, Chiao-Ven},
title = {Preservation technology investment, trade credit and partial backordering model for a non-instantaneous deteriorating inventory},
journal = {RAIRO. Operations Research},
pages = {S51--S77},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2019095},
mrnumber = {4223107},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2019095/}
}
TY - JOUR AU - Hashan Md Mashud, Abu AU - Wee, Hui-Ming AU - Huang, Chiao-Ven TI - Preservation technology investment, trade credit and partial backordering model for a non-instantaneous deteriorating inventory JO - RAIRO. Operations Research PY - 2021 SP - S51 EP - S77 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2019095/ DO - 10.1051/ro/2019095 LA - en ID - RO_2021__55_S1_S51_0 ER -
%0 Journal Article %A Hashan Md Mashud, Abu %A Wee, Hui-Ming %A Huang, Chiao-Ven %T Preservation technology investment, trade credit and partial backordering model for a non-instantaneous deteriorating inventory %J RAIRO. Operations Research %D 2021 %P S51-S77 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2019095/ %R 10.1051/ro/2019095 %G en %F RO_2021__55_S1_S51_0
Hashan Md Mashud, Abu; Wee, Hui-Ming; Huang, Chiao-Ven. Preservation technology investment, trade credit and partial backordering model for a non-instantaneous deteriorating inventory. RAIRO. Operations Research, Tome 55 (2021), pp. S51-S77. doi: 10.1051/ro/2019095
[1] and , Ordering policies of deteriorating items under permissible delay in payments. J. Oper. Res. Soc. 46 (1995) 658–662. | Zbl | DOI
[2] , and , A replenishment policy for items with price-dependent demand, time-proportional deterioration and no shortages. Int. J. Syst. Sci. 43 (2012) 903–910. | MR | Zbl | DOI
[3] and , Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis. Eur. J. Oper. Res. 243 (2015) 566–575. | MR | DOI
[4] and , Generalized convexity and optimization: Theory and application. Springer-Verlag Berlin Heidelberg, USA (2009). | MR | Zbl
[5] , , and , An integrated inventory model involving discrete Setup cost reduction, variable safety factor, selling price dependent demand, and investment. RAIRO: OR 53 (2019) 39–57. | MR | Numdam | DOI
[6] , The effect of preservation technology investment on a non-instantaneous deteriorating inventory model. Omega 41 (2013) 872–880. | DOI
[7] and , An optimal replenishment policy for deteriorating items with effective investment in preservation technology. Eur. J. Oper. Res. 218 (2012) 106–112. | MR | Zbl | DOI
[8] , Economic order quantity under conditions of permissible delay in payments. J. Oper. Res. Soc. 36 (1985) 335–338. | Zbl | DOI
[9] and , Optimizing inventory and pricing policy for seasonal deteriorating products with preservation technology investment J. Ind. Eng. 2013 (2013) 793568.
[10] and , A production–inventory model incorporating the effect of preservation technology investment when demand is fluctuating with time. J. Comput. Appl. Math. 239 (2013) 25–36. | MR | Zbl | DOI
[11] , and , Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities. Ann. Oper. Res. 248 (2017) 253–280. | MR | DOI
[12] , , and , Pricing, replenishment and preservation technology investment decisions for non-instantaneous deteriorating items. Omega 84 (2018) 114–126. | DOI
[13] , and , Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand. Ann. Oper. Res. 226 (2015) 397–416. | MR | DOI
[14] , and , Optimal dynamic pricing and replenishment policy for perishable items with inventory-level-dependent demand. Int. J. Syst. Sci. 47 (2016) 1480–1494. | MR | DOI
[15] , , and , A non-instantaneous inventory model having different deterioration rates with stock and price dependent demand under partially backlogged shortages. Uncertain Supply Chain Manage. 6 (2018) 49–64. | DOI
[16] , Controllable deterioration rate for time-dependent demand and time-varying holding cost. Yugoslav J. Oper. Res. 24 (2014) 87–98. | MR | DOI
[17] , An inventory model of instantaneous deteriorating items with controllable deterioration rate for time dependent demand and holding cost. J. Ind. Eng. Manage. 6 (2013) 495–506.
[18] , , and , Retailer’s joint ordering, pricing, and preservation technology investment policies for a deteriorating item under permissible delay in payments. Math. Probl. Eng. 5 (2018) 1–14 | MR | DOI
[19] , and , Optimal and simple algorithms to solve integrated procurement-production-inventory problem without/with shortage. RAIRO: OR 52 (2018) 755–778. | MR | Numdam | DOI
[20] , and , Single-machine lot scheduling problem for deteriorating items with negative exponential deterioration rate. RAIRO: OR 53 (2019) 1297–1307. | MR | Numdam | DOI
[21] , and , Economic lot-size problem for a cleaner manufacturing system with warm-up period. RAIRO: OR 54 (2020) 1495–1514. | MR | Numdam | DOI
[22] , , and , An EOQ model with quantity incentive strategy for deteriorating items and partial backlogging. Uncertain Supply Chain Manage. 5 (2017) 135–142. | DOI
[23] , Optimal production model with quality sensitive market demand, partial backlogging and permissible delay in payment. RAIRO: OR 52 (2018) 499–512. | MR | Numdam | DOI
[24] and , An inventory model with imperfect items, stock dependent demand and permissible delay in payments under inflation. RAIRO: OR 50 (2016) 473–489. | MR | Numdam | DOI
[25] and , An improved model with partial backlogging, time varying deterioration and stock-dependent demand. Econ. Model. 30 (2013) 924–932. | DOI
[26] , and , A two-warehouse inventory model with increasing demand and time varying deterioration. Sci. Iran. 19 (2012) 1969–1977. | DOI
[27] , and , Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates. Omega 41 (2013) 421–430. | DOI
[28] , , , and , Non instantaneous deterioration inventory model with price and stock dependent demand for fully backlogged shortages under inflation. Int. J. Bus. Forecasting Marketing Intell. 3 (2017) 152–164. | DOI
[29] , and , An economic order quantity model for deteriorating products having stock dependent demand with trade credit period and preservation technology. Uncertain Supply Chain Manage. 4 (2016) 29–42. | DOI
[30] , and , Economic order quantity model with trade credit financing for non-decreasing demand. Omega 40 (2012) 328–335. | DOI
[31] , , and , Impact of trade credit and inflation on retailer’s ordering policies for non-instantaneous deteriorating items in a two-warehouse environment. Int. J. Prod. Econ. 176 (2016) 154–169. | DOI
[32] , and , Lot-sizing policies for defective and deteriorating items with time-dependent demand and trade credit. Eur. J. Ind. Eng. 11 (2017) 683–703. | DOI
[33] , , and , Joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two-level partial trade credits in supply chain. Int. J. Prod. Econ. 200 (2018) 16–36. | DOI
[34] and , Dynamic pricing, promotion and replenishment policies for a deteriorating item under permissible delay in payments. Comput. Oper. Res. 35 (2008) 3562–3580. | Zbl | DOI
[35] , and , Optimal dynamic trade credit and preservation technology allocation for a deteriorating inventory model. Comput. Ind. Eng. 87 (2015) 356–369. | DOI
[36] , and , Optimal pricing policy for deteriorating items with preservation technology investment. J. Ind. Manage. Optim. 10 (2014) 1261–1277. | MR | Zbl | DOI
Cité par Sources :
