scholarly journals Integrated Supply Chain Cooperative Inventory Model with Payment Period Being Dependent on Purchasing Price under Defective Rate Condition

2015 ◽  
Vol 2015 ◽  
pp. 1-20
Author(s):  
Ming-Feng Yang ◽  
Jun-Yuan Kuo ◽  
Wei-Hao Chen ◽  
Yi Lin
Keyword(s):  
Transportation Cost ◽  
Inventory Model ◽  
Sale Price ◽  
Repair Rate ◽  
Rate Condition ◽  
Proposed Model ◽  
Total Profit ◽  
Holding Cost ◽  
Integrated Supply Chain ◽  
To Receive

In most commercial transactions, the buyer and vendor may usually agree to postpone payment deadline. During such delayed period, the buyer is entitled to keep the products without having to pay the sale price. However, the vendor usually hopes to receive full payment as soon as possible, especially when the transaction involves valuable items; yet, the buyer would offer a higher purchasing price in exchange of a longer postponement. Therefore, we assumed such permissible delayed period is dependent on the purchasing price. As for the manufacturing side, defective products are inevitable from time to time, and not all of those defective products can be repaired. Hence, we would like to add defective production and repair rate to our proposed model and discuss how these factors may affect profits. In addition, holding cost, ordering cost, and transportation cost will also be considered as we develop the integrated inventory model with price-dependent payment period under the possible condition of defective products. We would like to find the maximum of the joint expected total profit for our model and come up with a suitable inventory policy accordingly. In the end, we have also provided a numerical example to clearly illustrate possible solutions.

scholarly journals An Inventory Model for Deteriorating Items with Stock Dependent Demand and Partial Backlogging

2021 ◽  
Vol 9 (12) ◽  
pp. 296-302
Author(s):  
Vikas Kumar
Keyword(s):  
Waiting Time ◽  
Simple Algorithm ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Partial Backlogging ◽  
Numerical Examples ◽  
Proposed Model ◽  
Stock Dependent Demand ◽  
Total Profit ◽  
Dependent Demand

Abstract: In this paper, we formulate a deteriorating inventory model with stock-dependent demand Moreover, it is assumed that the shortages are allowed and partially backlogged, depending on the length of the waiting time for the next replenishment. The objective is to find the optimal replenishment to maximizing the total profit per unit time. We then provide a simple algorithm to find the optimal replenishment schedule for the proposed model. Finally, we use some numerical examples to illustrate the model. Keywords- Inventory, Deteriorating items, Stock dependent demand, Partial backlogging

scholarly journals Integrated multistage supply chain inventory model of multiple retailers with imperfect production and inspection systems

2021 ◽  
Author(s):  
Chi-Jie Lu ◽  
Ming Gu ◽  
Tian-Shyug Lee ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Optimal Solution ◽  
Solution Procedure ◽  
Inventory Model ◽  
Model Complexity ◽  
Supply Chain System ◽  
Imperfect Production ◽  
Proposed Model ◽  
Inspection Systems ◽  
Total Profit

Abstract An integrated multistage supply chain inventory model containing a single manufacturer and multiple retailers is proposed to consider deteriorating materials and finished products with imperfect production and inspection systems. The main purpose is to jointly determine the manufacturer’s production and delivery strategies and the retailers’ replenishment strategies to maximize the integrated total profit. First, the individual total profit functions of the manufacturer and multiple retailers are established and are integrated to form the total profit function of the supply chain system. Then, to address the model complexity, an algorithm is proposed to obtain the optimal solution. Several practical numerical examples are presented to demonstrate the solution procedure, and a sensitivity analysis is performed on the major parameters. From the numerical results, several findings that differ from those in the previous literature were observed. First, retailers with larger market scale, better cost control, and inspection capabilities guarantee higher integrated total profit. Second, increasing the deterioration rates of materials and finished products affect the order quantity of materials in various ways. Third, the manufacturer’s shipping strategy is rigid and not easily adjusted in the proposed model. The performance of the proposed model has several meaningful management implications.

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.

scholarly journals Pharmaceutical drug two-warehouse inventory model under FIFO dispatching policy using ant colony optimization for travelling salesman problem

2021 ◽  
Vol 5 (S2) ◽  
Author(s):  
Ajay Singh Yadav ◽  
Veenita Sharma ◽  
Priyanka Agarwal ◽  
Anupam Swami ◽  
Piyush Kumar Yadav
Keyword(s):  
Ant Colony Optimization ◽  
Travelling Salesman Problem ◽  
Storage System ◽  
Transportation Cost ◽  
Inventory Model ◽  
Ant Colony ◽  
Travelling Salesman ◽  
Pharmaceutical Drug ◽  
Holding Cost ◽  
Dependent Demand

In this paper a deterministic Pharmaceutical drug inventory model for deteriorating items with two level of storage system and time dependent demand with partial backlogged shortages is developed. Stock is transferred RW to OW under bulk release pattern and the transportation cost is taken to be negligibleUnder FIFO dispatching policy Using Ant Colony Optimization for travelling salesman problem. The deterioration rates in both the warehouses are constant but different due to the different preservation proceduresUnder FIFO dispatching policy Using Ant Colony Optimization for travelling salesman problem. Holding cost is considered to be constant up to a definite time and is increases. Ant Colony Optimization for travelling salesman problemwith varying population size is used to solve the model. In this Ant Colony Optimization for travelling salesman problem a subset of better children is included with the parent population for next generation and size of this subset is a percentage of the size of its parent set.The numerical example is presented to demonstrate the development of mode land to validate it. Sensitivity analysis is performed separately for each parameter and Ant Colony Optimization for travelling salesman problem.

Imprecise Inventory Model for Items With Imperfect Quality Subject to Learning Effects Having Shortages

2018 ◽  
pp. 284-304
Author(s):  
Sumana Saha ◽  
Tripti Chakrabarti
Keyword(s):  
Optimal Solution ◽  
Inventory Model ◽  
Extension Principle ◽  
Market Demand ◽  
Screening Process ◽  
Defective Items ◽  
Inventory Costs ◽  
Eoq Model ◽  
Proposed Model ◽  
Holding Cost

The fundamental assumption of an economic order quantity (EOQ) model is that 100% of items in an ordered lot are perfect. This assumption is not always pertinent for production processes because of process deterioration or other factors. This paper develops an EOQ model for that each ordered lot contains some defective items and shortages backordered. Here, an inventory model is developed to deal the impreciseness present in market demand. It is assumed that the received items are not of perfect quality and after screening, imperfect items are withdrawn from inventory and sold at discounted price. However, in practice, errors occur in screening test. So, the screening process fails to be perfect. Due to acquaintance with handling methodology and system, holding cost and ordering cost are gradually decreases from one shipment to another. So, learning effect is incorporated on holding cost, ordering cost and number of defective items present in each lot. Due to impreciseness in market demand and in different inventory costs, profit expression is fuzzy in nature. To fuzzify the profit expression, Extension Principle is used and for defuzzification Signed distance method is applied. Finally, the feasibility of proposed model and the effect of learning on optimal solution are shown through numerical example.

scholarly journals Integrated inventory model involving quality improvement investment and advance-cash-credit payments

2021 ◽  
Author(s):  
Chih-Te Yang ◽  
Chien-Hsiu Huang ◽  
Liang-Yuh Ouyang
Keyword(s):  
Optimal Solution ◽  
Inventory Model ◽  
Decision Makers ◽  
Optimal Solutions ◽  
Order Quantity ◽  
Defective Items ◽  
Numerical Examples ◽  
Proposed Model ◽  
Production Inventory ◽  
Total Profit

This paper investigates the effects of investment and inspection policies on an integrated production–inventory model involving defective items and upstream advance-cash-credit payment provided by the supplier. In this model, retailers offer customers a downstream credit period. Furthermore, the defective rate of the item can be improved through capital co-investment by the supplier and retailer. The objective of this study was to determine the optimal shipping quantity, order quantity, and investment alternatives for maximizing the supply chain's joint total profit per unit time. An algorithm was developed to obtain the optimal solution for the proposed problem. Several numerical examples are used to demonstrate the proposed model and analyze the effects of parameters changes on the optimal solutions. Finally, management implications for relevant decision makers are obtained from the numerical examples.

scholarly journals An EOQ model for deteriorating items analyzing retailer’s optimal strategy under trade credit and return policy with nonlinear demand and resalable returns

2022 ◽  
Vol 12 (1) ◽  
pp. 47-55
Author(s):  
Mamta Kumari ◽  
Pijus Kanti De
Keyword(s):  
Trade Credit ◽  
Inventory Model ◽  
Optimal Order ◽  
Selling Price ◽  
Return Policy ◽  
Eoq Model ◽  
Proposed Model ◽  
Total Profit ◽  
Replenishment Cycle ◽  
Full Trade Credit

This paper presents an EOQ model where demand is dependent upon time and selling price. In the proposed model of inventory, the retailer allows its unsatisfied customers to return their product whereas the manufacturer offers a full trade credit policy to the retailer. To make our model realistic, we have assumed that the product returned can be resold with the same selling price. Number of returns is a function of demand. In this proposed inventory model considering deterioration, the retailer does not fully reimburse its customers for the returned product. The primary purpose of this inventory model is to determine the optimal selling price, optimal order quantity, and optimal replenishment cycle length in order to maximize the retailer’s total profit earned per unit time. A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.

INVENTORY MODEL OF DETERIORATING ITEMS FOR LINEAR HOLDING COST WITH TIME DEPENDENT DEMAND

2015 ◽  
Vol 4 (1) ◽  
pp. 29-36
Author(s):  
N Mishra ◽  
SP Mishra ◽  
Srichandan Mishra ◽  
J Panda ◽  
UK Misra
Keyword(s):  
Inventory Model ◽  
Deteriorating Items ◽  
Time Dependent ◽  
Holding Cost ◽  
Dependent Demand

Designing an uncertain bi-objective green leagile capacitated lot sizing problem considering FM/M/C queue system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masoud Rabbani ◽  
Soroush Aghamohamadi Bosjin ◽  
Neda Manavizadeh ◽  
Hamed Farrokhi-Asl
Keyword(s):  
Mathematical Model ◽  
Solution Method ◽  
Lot Sizing ◽  
Test Problems ◽  
Content Type ◽  
Queue System ◽  
Proposed Model ◽  
Lot Sizing Problem ◽  
Capacitated Lot Sizing ◽  
To Receive

Purpose This paper aims to present a novel bi-objective mathematical model for a production-inventory system under uncertainty. Design/methodology/approach This paper addresses agile and lean manufacturing concepts alongside with green production methods to design an integrated capacitated lot sizing problem (CLSP). From a methodological perspective, the problem is solved in three phases. In the first step, an FM/M/C queuing system is used to minimize the number of customers waited to receive their orders. In the second step, an effective approach is applied to deal with the fuzzy bi-objective model and finally, a hybrid metaheuristic algorithm is used to solve the problem. Findings Some numerical test problems and sensitivity analyzes are conducted to measure the efficiency of the proposed model and the solution method. The results validate the model and the performance of the solution method compared to Gams results in small size test problems and prove the superiority of the hybrid algorithm in comparison with the other well-known metaheuristic algorithms in large size test problems. Originality/value This paper presents a novel bi-objective mathematical model for a CLSP under uncertainty. The proposed model is conducted on a practical case and several sensitivity analysis are conducted to assess the behavior of the model. Using a queue system, this problem aims to reduce the items waited in the queue to receive service. Two objective functions are considered to maximize the profit and minimize the negative environmental effects. In this regard, the second objective function aims to reduce the amount of emitted carbon.

Sign in / Sign up

Export Citation Format

Share Document