scholarly journals Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits

2014 ◽  
Vol 2014 ◽  
pp. 1-5 ◽  
Author(s):  
Nita H. Shah ◽  
Dushyantkumar G. Patel ◽  
Digeshkumar B. Shah
Keyword(s):  
Dairy Products ◽  
Retail Price ◽  
Credit Period ◽  
Maximum Lifetime ◽  
Constant Rate ◽  
Optimal Policies ◽  
Trade Credits ◽  
Total Profit ◽  
Fixed Lifetime ◽  
Purchase Quantity

The retailer’s optimal policies are developed when the product has fixed lifetime and also the units in inventory are subject to deterioration at a constant rate. This study will be mainly applicable to pharmaceuticals, drugs, beverages, and dairy products, and so forth. To boost the demand, offering a credit period is considered as the promotional tool. The retailer passes credit period to the buyers which is received from the supplier. The objective is to maximize the total profit per unit time of the retailer with respect to optimal retail price of an item and purchase quantity during the optimal cycle time. The concavity of the total profit per unit time is exhibited using inventory parametric values. The sensitivity analysis is carried out to advise the decision maker to keep an eye on critical inventory parameters.

Optimal Credit Period and Lot-Size for Deteriorating Items With Fixed Life Time and Trade Credits

2018 ◽  
pp. 44-57
Author(s):  
Dushyantkumar G. Patel ◽  
Nita H. Shah ◽  
Digeshkumar B. Shah
Keyword(s):  
Default Risk ◽  
Life Time ◽  
Inventory Model ◽  
Sensitivity Analyses ◽  
Profit Function ◽  
Lot Size ◽  
Credit Period ◽  
Trade Credits ◽  
Total Profit ◽  
Prime Objective

To boost the sale is the prime objective for promoters. For this purpose, they generally allow credit period. In this article, we have considered an inventory model in which supplier gives credit period to retailer and to increase the sale, retailer passes it to end customers. This phenomenon is known as two level trade credits. By allowing credit period we may encounter with the issue of default risk which has been taken care of while calculating profit function for the system. Also, each and every inventory product gets deteriorated over the time as per its nature and such deteriorating products have its maximum life time as well. The present inventory model deals with such products. Quadratic demand is discussed here which is suitable for the products for which demand increases initially and after sometimes it shows decreasing pattern. Finally, retailer's total profit is maximized with respect to credit period and cycle time. Numerical examples are given to validate the model. Sensitivity analyses are done to filter significant inventory parameters.

scholarly journals Optimal Pricing Decisions for a Low-Carbon Supply Chain Considering Fairness Concern under Carbon Quota Policy

2021 ◽  
Vol 18 (2) ◽  
pp. 556
Author(s):  
Hao Zou ◽  
Jin Qin ◽  
Bo Dai
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Reduction Rate ◽  
Retail Price ◽  
Low Carbon ◽  
Close Attention ◽  
Carbon Emission Reduction ◽  
Carbon Supply ◽  
Total Profit ◽  
Fairness Concern

This research investigates the effect of fairness concerns on a sustainable low-carbon supply chain (LCSC) with a carbon quota policy, in which a manufacturer is in charge of manufacturing low-carbon products and sells them to a retailer. The demand is affected by price and the carbon emission reduction rate. The optimal decisions of pricing and carbon emission reduction rate are analyzed under four decision models: (i) centralized decision, (ii) decentralized decision without fairness concern, (iii) decentralized decision with manufacturer’s fairness concern, (iv) decentralized decision with retailer’s fairness concern. The results indicate that the profits in the centralized LCSC are higher than those in the decentralized LCSC with fairness concern. If a manufacturer pays close attention to fairness, the fairness concern coefficient will reduce the carbon emission reduction rate and the profit of the LCSC and increase the wholesale price and the retail price of the product. If a retailer pays close attention to fairness, and the preference of consumers for a low-carbon product is low, the fairness concern coefficient of the retailer increases the total profit of the LCSC and decreases the carbon emission reduction rate and retail price of the product. Otherwise, if the preference of consumers for a low-carbon product is great, the fairness concern coefficient of the retailer would lead to a lower retail price compared with the retail price in the centralized decision and decrease the total profit of the LCSC.

Optimal Policies for Items With Quadratic Demand and Time-Dependent Deterioration Under Two Echelon Trade Credits

2018 ◽  
pp. 32-43 ◽  
Author(s):  
Azharuddin Sarfuddin Shaikh ◽  
Poonam Prakash Mishra
Keyword(s):  
Trade Credit ◽  
Time Dependent ◽  
Decision Variable ◽  
Lot Size ◽  
Variable Sensitivity ◽  
Trade Credits ◽  
Total Profit ◽  
Holding Cost ◽  
Delay In Payments ◽  
Home Furnishing

In today's competitive and global business scenario there is always a race to boost demand of your product over others. This can be achieved by different means and allowing permissible delay in payments is one of them. Researchers have proposed number of inventory models with trade credit that actually help to understand effect of trade credit on total profit and overall demand. This paper proposes a two – echelon trade credit where retailer receives credit period from the manufacturer and offer it to end customers appropriately to raise demand. Proposed inventory model assumes quadratic demand and subjected to time dependent deterioration. Ordering cost is considered lot – size dependent whereas holding cost has been taken time dependent. In this model profit is maximized considering cycle time as a decision variable. Sensitivity analysis of crucial inventory parameters and numeric examples are discussed in detail. Outcome of this model can be applied to a huge range of products like readymade garments, fashion accessories, electronics, furniture and home furnishing products.

Optimal Ordering for Deteriorating Items of Fixed-Life with Quadratic Demand and Two-Level Trade Credit

2016 ◽  
pp. 1-16 ◽  
Author(s):  
Nita H. Shah ◽  
Mrudul Yogeshkumar Jani
Keyword(s):  
Sensitivity Analysis ◽  
Decision Maker ◽  
Trade Credit ◽  
Life Time ◽  
Deteriorating Items ◽  
Total Cost ◽  
Credit Period ◽  
Numerical Examples ◽  
Optimal Ordering ◽  
Purchase Quantity

This chapter studies the retailer's ordering policies when items in the stocking system has fixed life time and subject to deteriorate with time. The demand is considered to be quadratically decreasing. The supplier offers credit period to the retailer which in turn is partially passed on to customer. The retailer is the decision maker and the objective is to minimize the total cost of the system by ordering optimum purchase quantity. Numerical examples are given to find the best possible scenario for the retailer. Sensitivity analysis is carried out to derive player's insights.

scholarly journals Optimal pricing and lot-sizing decisions under Weibull distribution deterioration and trade credit policy

2008 ◽  
Vol 18 (2) ◽  
pp. 221-234
Author(s):  
S.K. Manna ◽  
K.S. Chaudhuri ◽  
C. Chiang
Keyword(s):  
Weibull Distribution ◽  
Trade Credit ◽  
Lot Sizing ◽  
Retail Price ◽  
Lot Size ◽  
Credit Period ◽  
Two Parameter ◽  
Weibull Distribution Deterioration ◽  
Dependent Demand

In this paper, we consider the problem of simultaneous determination of retail price and lot-size (RPLS) under the assumption that the supplier offers a fixed credit period to the retailer. It is assumed that the item in stock deteriorates over time at a rate that follows a two-parameter Weibull distribution and that the price-dependent demand is represented by a constant-price-elasticity function of retail price. The RPLS decision model is developed and solved analytically. Results are illustrated with the help of a base example. Computational results show that the supplier earns more profits when the credit period is greater than the replenishment cycle length. Sensitivity analysis of the solution to changes in the value of input parameters of the base example is also discussed.

Joint Decision for Price Competitive Inventory Model with Time-Price and Credit Period Dependent Demand

2017 ◽  
pp. 341-352
Author(s):  
Nita H. Shah
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
The Other ◽  
Market Demand ◽  
Joint Decision ◽  
Credit Period ◽  
Time Price ◽  
Delay In Payments ◽  
Dependent Demand

The problem analyzes a supply chain comprised of two front-runner retailers and one supplier. The retailers' offer customers delay in payments to settle the accounts against the purchases which is received by the supplier. The market demand of the retailer depends on time, retail price and a credit period offered to the customers with that of the other retailer. The supplier gives items with same wholesale price and credit period to the retailers. The joint and independent decisions are analyzed and validated numerically.

scholarly journals Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market

2009 ◽  
Vol 2009 ◽  
pp. 1-15 ◽  
Author(s):  
Nita H. Shah ◽  
Kunal T. Shukla
Keyword(s):  
Optimal Strategy ◽  
Transportation Cost ◽  
Numerical Examples ◽  
Optimal Transfer ◽  
Display Area ◽  
Proposed Model ◽  
Constant Rate ◽  
Total Profit

The retailer's optimal procurement quantity and the number of transfers from the warehouse to the display area are determined when demand is decreasing due to recession and items in inventory are subject to deterioration at a constant rate. The objective is to maximize the retailer's total profit per unit time. The algorithms are derived to find the optimal strategy by retailer. Numerical examples are given to illustrate the proposed model. It is observed that during recession when demand is decreasing, retailer should keep a check on transportation cost and ordering cost. The display units in the show room may attract the customer.

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