scholarly journals An Inventory Model for Perishable Items with Price-, Stock-, and Time-Dependent Demand Rate considering Shelf-Life and Nonlinear Holding Costs

2021 ◽  
Vol 2021 ◽  
pp. 1-36
Author(s):  
Adrián Macías-López ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Rodrigo E. Peimbert-García ◽  
Buddhadev Mandal
Keyword(s):  
Shelf Life ◽  
Inventory Management ◽  
Cycle Time ◽  
Research Work ◽  
Quadratic Function ◽  
Inventory Model ◽  
Perishable Items ◽  
Demand Functions ◽  
Price Demand ◽  
Dependent Demand

Nowadays, consumers are more health conscious than before, and their demand of fresh items has intensely increased. In this context, an effective and efficient inventory management of the perishable items is needed in order to avoid the relevant losses due to their deterioration. Furthermore, the demand of products is influenced by several factors such as price, stock, and freshness state, among others. Hence, this research work develops an inventory model for perishable items, constrained by both physical and freshness condition degradations. The demand for perishable items is a multivariate function of price, current stock quantity, and freshness condition. Specific to price, six different price-dependent demand functions are used: linear, isoelastic, exponential, logit, logarithmic, and polynomial. By working with perishable items that eventually deteriorate, this inventory model also takes into consideration the expiration date, a salvage value, and the cost of deterioration. In addition, the holding cost is modelled as a quadratic function of time. The proposed inventory model jointly determines the optimal price, the replenishment cycle time, and the order quantity, which together result in maximum total profit per unit of time. The inventory model has a wide application since it can be implemented in several fields such as food goods (milk, vegetables, and meat), organisms, and ornamental flowers, among others. Some numerical examples are presented to illustrate the use of the inventory model. The results show that increasing the value of the shelf-life results in an increment in price, inventory cycle time, quantity ordered, and profits that are generated for all price demand functions. Finally, a sensitivity analysis is performed, and several managerial insights are provided.

scholarly journals An Inventory Model for Deteriorating Drugs with Stochastic Lead Time

2018 ◽  
Vol 15 (12) ◽  
pp. 2772 ◽  
Author(s):  
Jian Li ◽  
Lu Liu ◽  
Hao Hu ◽  
Qiuhong Zhao ◽  
Libin Guo
Keyword(s):  
Shelf Life ◽  
Inventory Management ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Effective Management ◽  
Product Availability ◽  
Stochastic Lead Time ◽  
Random Lead Time ◽  
The Right

Inventory management of deteriorating drugs has attracted considerable attention recently in hospitals. Drugs are a kind of special product. Two characteristics of some drugs are the shorter shelf life and high service level. This causes hospitals a great deal of difficulty in inventory management of perishable drugs. On one hand, hospitals should increase the drug inventory to achieve a higher service level. On the other hand, hospitals should decrease the drug inventory because of the short shelf life of drugs. An effective management of pharmaceuticals is required to ensure 100% product availability at the right time, at the right cost, in good conditions to the right customers. This requires a trade-off between shelf-life and service level. In addition, many uncontrollable factors can lead to random lead time of drugs. This paper focuses on deteriorating drugs with stochastic lead time. We have established a stochastic lead time inventory model for deteriorating drugs with fixed demand. The lead time obeyed a certain distribution function and shortages were allowed. This model also considered constraints on service level, stock space and drug shelf life. Through the analysis of the model, the shelf life of drugs and service level were weighted in different lead time distributions. Empirical analysis and sensitivity analysis were given to get reach important conclusions and enlightenment.

A fuzzy imperfect production and repair inventory model with time dependent demand, production and repair rates under inflationary conditions

2018 ◽  
Vol 52 (1) ◽  
pp. 217-239 ◽  
Author(s):  
Shalini Jain ◽  
Sunil Tiwari ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Ali Akbar Shaikh ◽  
Shiv Raj Singh
Keyword(s):  
Research Work ◽  
Repair Process ◽  
Inventory Model ◽  
Time Dependent ◽  
Imperfect Production ◽  
Imperfect Items ◽  
Demand Rate ◽  
The Impact ◽  
Varying Demand ◽  
Dependent Demand

This research work derives an integrated inventory model for imperfect production/remanufacturing process with time varying demand, production and repair rates under inflationary environment. This inventory model deals with the joint manufacturing and remanufacturing options. There is a collection process devoted to collect used items with the aim to remanufacture them. Both production and repair runs generate imperfect items. The repair process remanufactures used and imperfect items. Further, it is also considered that the remanufactured item that is classified as good has exactly same quality as that of new one. Demand rate is supposed as time dependent. The production rate is assumed to be demand dependent and therefore it is also time dependent. The repair rate is supposed to be a function of time. All system costs are contemplated in uncertain environment. Therefore, the costs are considered as fuzzy nature. Theoretical results are illustrated thru a numerical example. Finally, a sensitivity analysis is performed in order to know the impact of different parameters on the optimal policy.

scholarly journals Two Level Trade Credit Policy Approach in Inventory Model with Expiration Rate and Stock Dependent Demand under Nonzero Inventory and Partial Backlogged Shortages

2021 ◽  
Vol 13 (23) ◽  
pp. 13493
Author(s):  
Ali Akbar Shaikh ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Amalesh Kumar Manna ◽  
Armando Céspedes-Mota ◽  
Gerardo Treviño-Garza
Keyword(s):  
Trade Credit ◽  
Research Work ◽  
Real Life ◽  
Optimal Number ◽  
Inventory Model ◽  
Inventory Level ◽  
Credit Policy ◽  
Rate Dependent ◽  
Total Profit ◽  
Dependent Demand

In present real life situations, the stock and expiration date directly impact on the demand of an item. In this context, this research work develops an inventory model for stock and expiration rate-dependent demand under a two-level trade credit policy. Specifically, the following three situations are studied: (i) trade credit policy without zero ending inventory; (ii) trade credit policy with zero ending inventory; (iii) trade credit policy with partial backlogged shortages. The proposed inventory model is formulated as a non-linear constrained optimization problem. Some theoretical results are derived, and an algorithm is stated in order to solve the proposed inventory model. The main objective of the inventory model is to determine the optimal cycle length, the optimal ending inventory level, and the optimal number of units displayed which maximize the total profit. Some numerical examples are solved. Finally, a sensitivity analysis is done with the aim to see the impacts of a variation of the input parameters on the decision variables and the total profit.

scholarly journals Profitability Index Maximization in an Inventory Model with a Price- and Stock-Dependent Demand Rate in a Power-Form

Mathematics ◽  
2021 ◽  
Vol 9 (10) ◽  
pp. 1157
Author(s):  
Valentín Pando ◽  
Luis A. San-José ◽  
Joaquín Sicilia ◽  
David Alcaide-López-de-Pablo
Keyword(s):  
Cycle Time ◽  
Optimal Policy ◽  
Inventory Model ◽  
Selling Price ◽  
Lot Size ◽  
Financial Investment ◽  
Demand Rate ◽  
Holding Cost ◽  
Optimal Values ◽  
Dependent Demand

This paper presents the optimal policy for an inventory model where the demand rate potentially depends on both selling price and stock level. The goal is the maximization of the profitability index, defined as the ratio income/expense. A numerical algorithm is proposed to calculate the optimal selling price. The optimal values for the depletion time, the cycle time, the maximum profitability index, and the lot size are evaluated from the selling price. The solution shows that the inventory must be replenished when the stock is depleted, i.e., the depletion time is always equal to the cycle time. The optimal policy is obtained with a suitable balance between ordering cost and holding cost. A condition that ensures the profitability of the financial investment in the inventory is established from the initial parameters. Profitability thresholds for several parameters, including the scale and the non-centrality parameters, keeping all the others fixed, are evaluated. The model with an isoelastic price-dependent demand is solved as a particular case. In this last model, all the optimal values are given in a closed form, and a sensitivity analysis is performed for several parameters, including the scale parameter. The results are illustrated with numerical examples.

scholarly journals Analysis of Inventory Level Optimization Using PSONN Model and Fuzzy Logic Approach

2019 ◽  
Vol 5 (10) ◽  
pp. 1-6
Author(s):  
Yogesh . ◽  
Sudhir Shrivastava
Keyword(s):  
Inventory Management ◽  
Raw Materials ◽  
Research Work ◽  
Inventory Model ◽  
Inventory Level ◽  
Financial Loss ◽  
Area Of Interest ◽  
Employee Attrition ◽  
Fuzzy Logic Approach ◽  
Artificial Intelligence Models

Raw materials, intermediate goods and finished goods are termed as inventories while considering it as portion of business’s assets which can be considered as prepared or are prepared for sale. One of the suitable solutions is to design optimal inventory model. Major concern of industry is to design suitable inventory model. Some of the existing inventory management research work are discussed in literature. But this field is still a big area of interest. Many research works used artificial intelligence models for inventory management. One amongst the area for inventory management is worker behavior in a company. So, employees are taken into account to be as an inventory that contributes in growth of an organization. Employee attrition may be a big issue for the organizations specially once trained, technical and key staff leave for a far better chance from the organization. This results in financial loss to replace a trained employee. Therefore, this paper uses the current and past employees’ data to analyze attrition behavior of employees and to provide bonus/promotion to employees having non attrition behavior by using PSONN and fuzzy rules. The result shows that the efficiency of model is improved with respect to existing methods by approximately 2%.

scholarly journals COVID-19 SOCIAL DISTANCING AND PROFIT MAXIMIZATION INVENTORY MODEL WITH OVERAGE

2021 ◽  
Vol 9 (1) ◽  
pp. 704-708
Author(s):  
Nivetha Martin, A. Aleeswari ,P. Pandiammal, N. Ramila Gandhi
Keyword(s):  
Inventory Management ◽  
Research Work ◽  
Profit Maximization ◽  
Inventory Model ◽  
Special Focus ◽  
The Novel ◽  
Social Distancing ◽  
Novel Approach ◽  
Proposed Model ◽  
Optimal Quantity

Goal: This research work aims in presenting the impacts of social distancing on the societal domain in particularly with the special focus on inventory management, the accelerating fuel of the production sectors. A profit maximization inventory model comprises of overage management, waste disposal and product propagation is proposed. Design / Methodology / Approach: A mathematical model with the objective of profit maximization and overage management is developed to cater the needs of the production sectors at times of pandemic situation. Results: This model yields the optimal quantity (Qα) that maximizes the expected aggregate profit per unit of time. Limitations of the investigation: This research is of exploratory kind and the lack of similar research in the literature locks the opportunity of comparison, also the proposed model is a more generalized in nature. Practical implications: The proposed maximization model will certainly assist the decision makers to handle the situations of overage caused by pandemic social distancing. Originality/Value: The combination of profit maximization, overage management in the context of COVID 19 social distancing is modelled to benefit the production sectors and this is the novel approach of this article.

Three-echelon supply chain inventory model for growing items

2019 ◽  
Vol 15 (2) ◽  
pp. 567-587 ◽  
Author(s):  
Makoena Sebatjane ◽  
Olufemi Adetunji
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Inventory Management ◽  
Cycle Time ◽  
Food Production ◽  
Cost Savings ◽  
Inventory Model ◽  
Customer Demand ◽  
Content Type ◽  
Growing Items

Purpose The purpose of this paper is to formulate a coordinated inventory control model for growing items in a supply chain with farming, processing and retail operations. The farmer grows newborn items and then delivers them to a processor once the items mature. At the processing plant, the items are slaughtered, cut and packaged at a specified rate. The processor then delivers a certain number of equally sized shipments of processed items to a retailer who satisfies customer demand. Design/methodology/approach A cost minimisation inventory model describing the problem at hand is formulated with the number of shipments and the cycle time being the decision variables. A solution algorithm for solving the problem is presented and applied to a numerical example. Findings Opting for an integrated policy is favourable to all supply chain members. When the proposed model is compared to equivalent independent and equal-cycle time replenishment policies, the total cost savings amount to 3 and 14 per cent, respectively. Social implications The model can serve as a guideline for procurement managers dealing with growing items to better their inventory management practices. Considerable cost savings in food production chains can be achieved through improved inventory control, and these savings can be used to cushion consumers against rising food prices. Originality/value Most previously published models on inventory management for growing items were formulated under the assumption that the items are grown and then sold to consumers instantaneously. In real food production systems, the items need to be transformed and packaged into a consumable form before customer demand is met. The model presented in this paper accounts for this and is therefore more realistic.

scholarly journals Analysis of Inventory Model with Time Dependent Quadratic Demand Function Including Time Variable Deterioration Rate without Shortage

2021 ◽  
pp. 97-109
Author(s):  
Md. Atiqur Rahman ◽  
Mohammed Forhad Uddin
Keyword(s):  
Demand Function ◽  
Optimal Solution ◽  
Quadratic Function ◽  
Inventory Model ◽  
Time Dependent ◽  
Inventory Cost ◽  
Total Cost ◽  
Deterioration Rate ◽  
Total Inventory ◽  
Dependent Demand

This paper deals with an inventory model for deteriorating items along with time dependent demand which is quadratic function of time. In this model, the deterioration rate follows deterministic deterioration which is quadratic function of time. Here shortages are not allowed. The main purpose of this paper is to investigate minimum total cost per unit time of the inventory model. The result are validated with the help of numerical example. The sensitivity analysis of the optimal solution with respect to various parameters is carried out. Finally the behavior of the relation between parameters and total inventory cost have been shown using figure.

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