scholarly journals Pricing Decision within an Inventory Model for Complementary and Substitutable Products

Mathematics ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 568 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Masoumeh Sadat Babaei ◽  
Shib Sankar Sana ◽  
Biswajit Sarkar
Keyword(s):  
Optimization Method ◽  
Selling Price ◽  
Complementary Products ◽  
Substitutable Products ◽  
Pricing Decision ◽  
Proposed Model ◽  
Total Profit ◽  
Order Quantities ◽  
The Stability ◽  
Classical Optimization

A combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and inventory decisions for complementary and substitutable items which are deteriorating in nature. Four models are analyzed where the demand of one product is dependent upon the selling price and the price of another product. This paper tries to compute the optimum prices and order quantities to optimize the total profit, which is the main aim. Theoretically, this model is solved by a classical optimization method. Numerical examples demonstrate the applicability of this model. Results conclude that the total profit is dependent on the degree of substitutability and complementarity. A sensitivity analysis of optimal solutions is given to test the stability of the proposed model.

scholarly journals Optimal Pricing Decision of Fashion Apparel considering Experiential Service and Design Enhancement

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Qi Xu ◽  
Lili Zhou ◽  
Qi Chen
Keyword(s):  
Substitution Effects ◽  
Optimal Pricing ◽  
Selling Price ◽  
Market Demand ◽  
Complementarity Effect ◽  
Deterioration Rate ◽  
Pricing Decision ◽  
Proposed Model ◽  
Total Profit ◽  
Fashion Apparel

Fashionable clothing is susceptible to seasonality, fashion popularity, and other factors. The decline in the fashion level for fashion apparel will cause its market value to continuously decrease, reducing market demand and creating a backlog of apparel inventory. Under such a circumstance, the apparel retailer chooses to maintain the fashion of the goods by providing experiential services or enhancing product design capabilities. This paper focuses on the discussions on the issue of whether experience service and design efforts are complements or substitutes. The major objective is to simultaneously determine the experience service investment and the optimal selling price to maximize the total profit. First, a Cobb–Douglas utility function is used to derive a demand function that depends on the price and fashion level. Four kinds of inventory models are further established to obtain optimal pricing and inventory ordering strategies. Second, an algorithm is presented to search for the optimal solutions of the proposed model. Finally, a numerical example is provided to perform a sensitivity analysis of the key parameters and to discuss specific managerial insights. The numerical examples show that both the experiential services and the enhanced fashion design can effectively reduce the apparel company’s inventory and increase profits. When the two strategies are combined, they will produce complementary or substitution effects, which depend on the deterioration rate of the fashion level of the apparel. If the deterioration rate is less than a critical value, the interaction of experiential services and design investment has a complementarity effect.

scholarly journals Optimal Sales Discount Decision Model with Fixed Ordered Quantities

2014 ◽  
Vol 2 (4) ◽  
pp. 345-357
Author(s):  
Shi Zheng ◽  
Wen Zheng
Keyword(s):  
Mathematical Model ◽  
Optimal Solution ◽  
Decision System ◽  
Sales Price ◽  
Maximum Profit ◽  
Proposed Model ◽  
Demand Rate ◽  
Total Profit ◽  
Fixed Order ◽  
Order Quantities

AbstractThe purpose of this paper is to study sales pricing and discount strategy for sellers. Here, the suppliers require fixed order quantities to the sellers. Therefore, to incorporate the concept of sellers’ maximum profit and sales discount into the model, the author classifies the multi-category goods into backlog, flat and profitable one. Then the model to determine the optimal sales price strategy for a sales discount decision system with fixed order quantities is analyzed. As most of the non-linear model can be linearization, a mathematical model for sales discount decision system is developed when demand rate is a liner function of the sales price. By analyzing the total profit function, the authors developed some useful results to characterize the optimal solution and provided a method to find the sales discount for holdovers. By developing a solution algorithm, the optimal retail price and sales discount for holdovers are provided. Case scenarios are presented to validate the proposed model. Through case scenarios analyses, it is observed that optimal sales discount can help the sellers earn maximum profit with constraints of fixed order quantities. Most of the research articles available in the literature assumed that the sellers are always in optimal situation. In fact, sellers’ decisions rely on suppliers’ decisions in most cases. In this paper, determination of sales discounts can be seen as sellers compromise to suppliers by seeking the optimal strategy with downstream customers. In view of this fact, a mathematical model is developed considering sales price dependent linear demand and sellers’ profit. Very few researchers have investigated optimal sales discount decision system with fixed order quantities; although it is a real situation the sellers should be faced.

Inventory management with online payment and preorder discounts

2020 ◽  
Vol 120 (11) ◽  
pp. 2001-2023
Author(s):  
Md. Rakibul Hasan ◽  
Yosef Daryanto ◽  
Tutul Chandra Roy ◽  
Yi Feng
Keyword(s):  
Inventory Management ◽  
Selling Price ◽  
Content Type ◽  
Innovative Strategies ◽  
Online Payment ◽  
Proposed Model ◽  
Total Profit ◽  
Replenishment Cycle ◽  
Optimum Price ◽  
Inventory Decision

PurposeThe advancement of technology opens many opportunities for retailing businesses to increase their profit through innovative strategies, such as discount offers, preorder programs and online payment services. The purpose of this study is to investigate decision-making methods for retailers who sell deteriorating products that utilize an e-commerce platform and offering preorder.Design/methodology/approachThe authors study the optimum price and replenishment cycle when multiple discounts policy is implemented for customers when they purchase during the preorder period and make the payment via an online system. The proposed economic order quantity model works for noninstantaneous deteriorating items that will maximize the total profit. Moreover, it considers the effect of selling price and advertisement on customer demand. The concavity of the profit function is proved. Then, a comparison is carried out between the traditional payment system and online payment. Finally, two numerical examples and the sensitivity analysis are performed.FindingsThe results show the benefit of the system with online payment compared to the traditional one. Further analysis shows that the total profit increases when the frequency of advertisement, interest from the banking company, location perimeter and the nondeterioration time increase.Originality/valueThe proposed model guides e-commerce retailers optimizing the price and inventory decision when they offer a discount, preorder program and online payment service. No researcher has undergone a study with this complexity.

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.

scholarly journals Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

2020 ◽  
Author(s):  
Asim Paul ◽  
Magfura Pervin ◽  
Sankar Kumar Roy ◽  
Gerhard-Wilhelm Weber ◽  
Abolfazl Mirzazadeh
Keyword(s):  
Cycle Time ◽  
Default Risk ◽  
Optimal Solution ◽  
Global Maximum ◽  
Selling Price ◽  
Future Directions ◽  
Credit Period ◽  
Proposed Model ◽  
The Stability ◽  
The Mathematical Model

In this paper, we formulate and solve an economic order quantity model with default risk. Our main purpose is to investigate retailer's optimal replenishment time and credit period for deteriorating items under selling price-dependent demand while maximizing profit per unit time. Here, shortages are allowed and items are partially backlogged for interested customers. We show that optimal replenishment time and credit period not only exist but they are also unique. We solve the proposed problem analytically. An algorithm is presented to derive the optimal solution of the model. The mathematical model is evaluated by numerical examples. We use Mathematica to obtain a global maximum solution to the optimal cycle time and the optimal credit period for the proposed model. A sensitivity analysis with respect to major parameters is performed in order to examine the stability of our model. At the end of the paper, conclusions are drawn and an outlook of possible future directions is depicted.

Optimal Inventory Policies for Price and Time Sensitive Demand under Advertisement

2020 ◽  
Vol 13 ◽  
Author(s):  
Nita Shah ◽  
Ekta Patel ◽  
Kavita Rabari
Keyword(s):  
Cycle Time ◽  
Quadratic Function ◽  
Solution Procedure ◽  
Vital Role ◽  
Optimal Number ◽  
Deteriorating Items ◽  
Marginal Effect ◽  
Selling Price ◽  
Total Profit ◽  
Back Order

Aims: This article analyzes an inventory system for deteriorating items. The demand is quadratic function of time and is dependent on time, price and advertisement. Shortages are allowed and partially backlogged. Background: Demand and pricing are the two most crucial factors in inventory policy for any business to be successful. In today’s era of competitive circumstances, any product is promoted through advertisement, which plays a vital role in changing the demand pattern among the community. The marketing and demonstration of an item by time-to-time with fashionable advertisements through well-known media such as TV, radio, newspaper, magazine, etc. However, this idea is not always true for some goods like wheat, vegetables, fruits, food grains, medicines and other perishable goods due to their deteriorating nature and this in turn decreases demand for such goods. Deterioration may define as decay, damage, spoilage, evaporation, obsolescence, pilferage. Hence, deterioration effect is a major part in inventory control theory. So in this article demand rate is considered to be a function of selling price, time and occurrence of advertisement instantaneously. Objective: A solution procedure is obtained to find optimal number of price changes and optimal selling price to maximize the total profit. Method: Classical Optimization. Result: From the sensitivity analysis table, it can be seen that the optimal profit is highly sensible to advertisement coefficient and purchase cost. With an increment in rate of deterioration, selling price decreases. Scale demand has reasonable effect on cycle time and selling price. When the value of increase, the cycle length and profit goes on decreasing. Growth in profit is observed if we increase parameter b, higher will be the profit. Price elasticity is sensible parameter with respect to selling price. If backlogging rate increases, the profit will decreases. The inventory parameters holding cost, back order cost and lost sale cost have marginal effect on total profit. Conclusion: In this article, an inventory model is proposed for deteriorating items with variable demand depends upon the advertisement, selling price of the item and time. Shortages are allowed and partially backlogged and backlogging rate depends on the waiting time for the next replenishment. From this article, we can conclude that the parameters are insensible with respect to optimal profit, cycle time and selling price and rest of the parameters have practical output on total profit.

A novel multi-stage ensemble model with fuzzy clustering and optimized classifier composition for corporate bankruptcy prediction

2020 ◽  
pp. 1-17
Author(s):  
Dongqi Yang ◽  
Wenyu Zhang ◽  
Xin Wu ◽  
Jose H. Ablanedo-Rosas ◽  
Lingxiao Yang ◽  
...  
Keyword(s):  
Fuzzy Clustering ◽  
Rapid Development ◽  
Optimization Method ◽  
Selection Method ◽  
Bankruptcy Prediction ◽  
Ensemble Model ◽  
Composition Method ◽  
Classifier Selection ◽  
Multi Stage ◽  
Proposed Model

With the rapid development of commercial credit mechanisms, credit funds have become fundamental in promoting the development of manufacturing corporations. However, large-scale, imbalanced credit application information poses a challenge to accurate bankruptcy predictions. A novel multi-stage ensemble model with fuzzy clustering and optimized classifier composition is proposed herein by combining the fuzzy clustering-based classifier selection method, the random subspace (RS)-based classifier composition method, and the genetic algorithm (GA)-based classifier compositional optimization method to achieve accuracy in predicting bankruptcy among corporates. To overcome the inherent inflexibility of traditional hard clustering methods, a new fuzzy clustering-based classifier selection method is proposed based on the mini-batch k-means algorithm to obtain the best performing base classifiers for generating classifier compositions. The RS-based classifier composition method was applied to enhance the robustness of candidate classifier compositions by randomly selecting several subspaces in the original feature space. The GA-based classifier compositional optimization method was applied to optimize the parameters of the promising classifier composition through the iterative mechanism of the GA. Finally, six datasets collected from the real world were tested with four evaluation indicators to assess the performance of the proposed model. The experimental results showed that the proposed model outperformed the benchmark models with higher predictive accuracy and efficiency.

Light-Induced Metastable Defects in a-Si:H: Towards an Understanding

1985 ◽  
Vol 49 ◽  
Author(s):  
Martin Stutzmann ◽  
Warren B. Jackson ◽  
Chuang Chuang Tsai
Keyword(s):  
Amorphous Silicon ◽  
Mechanical Stress ◽  
Hydrogenated Amorphous Silicon ◽  
Material Parameters ◽  
Kinetic Behaviour ◽  
Proposed Model ◽  
Special Cases ◽  
The Stability ◽  
Hydrogenated Amorphous

AbstractThe dependence of the creation and the annealing of metastable dangling bonds in hydrogenated amorphous silicon on various material parameters will be discussed in the context of a recently proposed model. After a brief review of the kinetic behaviour governing defect creation and annealing in undoped a- Si:H, a number of special cases will be analyzed: the influence of alloying with O, N, C, and Ge, changes introduced by doping and compensation, and the role of mechanical stress. Finally, possibilities to increase the stability of a-Si:H based devices will be examined.

Analysis of Acoustic-Structure Interaction Using a High-Order Doubly Asymptotic Approximation

2016 ◽  
Vol 24 (01) ◽  
pp. 1550021 ◽  
Author(s):  
Heekyu Woo ◽  
Young S. Shin
Keyword(s):  
Order Approximation ◽  
Stable Model ◽  
Approximation Model ◽  
Third Order ◽  
Acoustic Structure ◽  
Structure Interaction ◽  
Proposed Model ◽  
The Stability ◽  
Third Order Approximation ◽  
Interaction Problem

In this paper, a new third-order approximation model for an acoustic-structure interaction problem is introduced. The new approximation model is designed to be an accurate and a stable model for predicting the response of a submerged structure. The proposed model is obtained by combining two lower order approximation models instead of using an operator matching method. The stability of this model is checked by a modal analysis. Finally, the approximation model is coupled to the spherical shell structure, and its performance is checked by a shock analysis.

scholarly journals Optimization of Consignment-Store-Based Supply Chain with Black Hole Algorithm

Complexity ◽  
2017 ◽  
Vol 2017 ◽  
pp. 1-12 ◽  
Author(s):  
Ágota Bányai ◽  
Tamás Bányai ◽  
Béla Illés
Keyword(s):  
Black Hole ◽  
Supply Chain ◽  
Optimization Problems ◽  
Optimization Method ◽  
Chain Model ◽  
Supply Chain Optimization ◽  
Proposed Model ◽  
Supply Chain Model ◽  
Supply Model ◽  
Black Hole Algorithm

The globalization of economy and market led to increased networking in the field of manufacturing and services. These manufacturing and service processes including supply chain became more and more complex. The supply chain includes in many cases consignment stores. The design and operation of these complex supply chain processes can be described as NP-hard optimization problems. These problems can be solved using sophisticated models and methods based on metaheuristic algorithms. This research proposes an integrated supply model based on consignment stores. After a careful literature review, this paper introduces a mathematical model to formulate the problem of consignment-store-based supply chain optimization. The integrated model includes facility location and assignment problems to be solved. Next, an enhanced black hole algorithm dealing with multiobjective supply chain model is presented. The sensitivity analysis of the heuristic black hole optimization method is also described to check the efficiency of new operators to increase the convergence of the algorithm. Numerical results with different datasets demonstrate how the proposed model supports the efficiency, flexibility, and reliability of the consignment-store-based supply chain.

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