Pricing of Special-Shaped Pearl Pendant Based on GABORGRANGER

In order to gain high innovation value profit of special-shaped pearl pendant on the market, the optimum price of such new product was confirmed in the work using GABOR-GRANGER. Firstly, 200 target consumers were selected for the cluster analysis of their attitudes toward baroque pearls. Then, GABOR-GRANGER was applied to calculate the fake income and price threshold of set price point. Last, it was determined the lower limit of 95% confidence bounds of the maximum value of fake income as the conservative optimal price. Results show that the main target consumer groups were not concerned about the price because of the singular and beautiful shape of pearl. Through calculation by Granger Gabor, the optimal price of special-shaped pearl pendant was higher 60.8% than the price obtained by cost plus calculation. Therefore, it is possible to achieve high innovation value profit of new products on the market.

Inventory management with online payment and preorder discounts

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.

Efficacy of Nifty Index Options through BSM Model

Options are one of the products in financial derivatives, which gives the rights to buy and sell the product to an option holder in pre-fixed price which known as the strike price or exercise price at certain periods. Options contract was existed in various countries for long time, but it became very popular among the investors when the Fisher Black, Myron Scholes and Robert Merton were introduced the Black-Scholes Model in the year of 1973. This model was formerly developed by these three economists who were also receiving the Nobel prize for finding this innovative model. This model is mainly used to deal with the theoretical pricing challenge in options price determination. In India the trading in Index Options commenced on 4th June 2001 and Options on individual securities commenced on 2nd July 2001. There are many types in options contracts like stock options; Index options, weather options, real options and etc. This study has mainly been focusing on Nifty 50 index options which are effectively trade at NSE. This paper goes to describe about the importance of options pricing and how the BSM model has effectively used to find the optimum price of the theoretical value of call and put options.

Microgrid Group Trading Model and Solving Algorithm Based on Blockchain

With the development of the energy Internet and the integration of multi-type energy situations, it is of great significance to study the competition game of a multi-agent microgrid group system for its development. As an emerging distributed database technology, blockchain technology has great application potential in the field of energy trading. Firstly, blockchain technology is coupled with the microgrid group transaction, and the information flow transaction model of a microgrid group based on blockchain technology is established. Aiming at this complex multi-objective optimization problem, an improved ant colony optimization algorithm is proposed to solve the model. Finally, the competitive trading model and solving algorithm are simulated and analyzed. The relevant results show that the near global optimum price strategy of each time based on the proposed model can effectively balance the efficiency of each subject in the market. In addition, the model ensures that there is no high-income and low-cost phenomenon in the trading process, therefore the security and quality of the market are guaranteed.

Quality Matters: Monopolistic Competition with Heterogeneous Consumers

The paper builds a two-sector monopolistic competition model featuring multi-product firms and heterogeneous consumers endowed with a Cobb–Douglas utility nesting a generalized CES function. In contrast to the standard CES, the generalized CES function includes both the love of variety and the love for product quality, which makes it possible to distinguish consumers differing in their product quality perception. The industrial sector encompasses firms producing differentiated products of varied quality, targeting a certain type of consumer. In such a case, firms set the price and quality for a particular product so as to maximize their profits, while consumers find the optimum price-quality combination, which may be different for groups of consumers having different preferences. The model allows one to derive the demand functions of heterogeneous consumers for goods of different quality and makes it possible to analyze different strategies of firms in their choice of the optimal price-quality ratio for their products. It also allows the formulation of conditions for screening in the case of incomplete information about the type of consumers. The main difference between the equations for screening in the model of monopolistic competition and the standard screening models in theory of contracts lies in the absence of individual rationality restrictions in the monopolistically competitive setting, where only the incentive compatibility is taken into account for both groups of consumers. As a result, in the absence of additional restrictions on the part of the regulatory authorities, the screening procedure in the monopolistic competition setting leads to a decrease in welfare for less affluent consumers.

Results of a Study on the Quality of Conical Picks for Public Procurement Purposes

The article presents the results of a study on the quality of conical picks for the purposes of tender procedures in accordance with the public procurement law in Poland. The pick studies presented here are one of the few that in practice allow the selection of an offer based on objectively determined numerical indicators defining the quality of the product and not only on the basis of price. Thanks to this, the contracting party can decide the relevance of price and quality in their evaluation of a pick. The geometrical and material parameters required in a tender, if not met, are the basis for rejecting a given offer of picks. The numerical parameter influencing the final evaluation of the offer is the picks’ rate of wear. Conical picks are tools for mining minerals, rocks, asphalt or concrete. They are used in many industries, especially in mining, construction and road engineering. In difficult working conditions, the durability of knives is limited to as little as several hours. Several dozen picks work on a cutting unit at the same time, and taking into account the price of a knife which oscillates around several dozen euros, significant operating costs are incurred. Therefore, the selection of tools with an optimum price-quality ratio is crucial. The article presents the results of studies on geometric parameters, material parameters and the rate of wear of 48 sets of picks conducted for a tender consisting of 14 tasks. The tender was conducted for 6 underground mines of a coal company. Five producers submitted their offers for selected tasks in the tender.

Efficiency Evaluation of Grain Harvesters of Different Types under North Kazakhstan Conditions

The problem of selecting certain types of grain combine harvesters is quite urgent now. This is because the agricultural manufacturers are struggling to make a right selection of a grain harvester of a definite firm or make due to the aggressive marketing from the manufacturers. (Research purpose) Efficiency evaluation of grain harvesters of different types under the North Kazakhstan weather conditions. (Materials and methods) Technical and economic research has been performed according to the standard methodology followed by data analysis. The calculation has been made for direct combining by 4, 5 and 6­-class harvesters equipped with wide­cut headers from leading domestic and foreign manufacturers. (Results and discussions) the authors have also calculated direct costs for thrashing of one ton of grain under favorable harvesting conditions, total costs for thrashing of one ton of grain including grain losses under unfavorable harvesting conditions, as well as total costs for thrashing of one ton of grain considering that 30% of grain is harvested under favorable harvesting conditions and 70% -­ under the ones. (Conclusion) It has been found that the price of thrashing of one ton of grain that characterizes the efficiency of utilizing grain harvesters depends on the price/efficiency ratio of a harvester, yield and harvesting conditions. Combine harvesters of a lower class with the optimum price/efficiency ratio are more preferable under favorable harvesting conditions. However, in case of the harvest period prolongation due to unfavorable harvesting conditions, combine harvesters of a higher class are more preferable.

Money Back Warranty on Pricing in Dual Channel Supply Chain (Case Study : Garlick Store Surabaya)

The development of internet brings great influence in business management, especially in supply chain. Transaction conducted through the internet in supply chain known e-fulfillment, is an integrated process from receiving customer order, managing transaction, warehousing, managing transportation, communicating, with customer using media of information technology. Online sales concept opens up the researchers to conduct research on online sales and offline sales simultaneously, known Dual Channel Supply Chain (DCSC). One category of products that are sold using this structure is fashion product. However, selling fashion product using DCSC structure it still has shortcomings and challenges. Due to customer can not make a selection, viewing and researching product and quality inspaction product dierctly. Based on this, some enterprises provide product warranty sales system offered. Warranty as a guarantee given to customer to provide security and comfort for making purchases. Warranty gives impact on price of product, both online and offline. This leads to the need to do a calculation the optimum price considering money back warranty. Optimum price obtained in the model demand function using quadratic programming adressing the objective function in the form profit maximum in individual channel (Pw, Ps dan Po) as well as whole profit in DCSC by considering the value of money back warranty (g). The result obatained is optimum price for two scenarios. There are optimum price in individual channel without money back warranty and optimum price in online channel with accomodate money back warranty. Keywords—dual channel supply chain (DCSC); money back warranty; optimization.

Money Back Warranty on Pricing in Dual Channel Supply Chain (Case Study : Garlick Store Surabaya)

The development of internet brings great influence in business management, especially in supply chain. Transaction conducted through the internet in supply chain known e-fulfillment, is an integrated process from receiving customer order, managing transaction, warehousing, managing transportation, communicating, with customer using media of information technology. Online sales concept opens up the researchers to conduct research on online sales and offline sales simultaneously, known Dual Channel Supply Chain (DCSC). One category of products that are sold using this structure is fashion product. However, selling fashion product using DCSC structure it still has shortcomings and challenges. Due to customer can not make a selection, viewing and researching product and quality inspaction product dierctly. Based on this, some enterprises provide product warranty sales system offered. Warranty as a guarantee given to customer to provide security and comfort for making purchases. Warranty gives impact on price of product, both online and offline. This leads to the need to do a calculation the optimum price considering money back warranty. Optimum price obtained in the model demand function using quadratic programming adressing the objective function in the form profit maximum in individual channel (Pw, Ps and Po) as well as whole profit in DCSC by considering the value of money back warranty (g). The result obatained is optimum price for two scenarios. There are optimum price in individual channel without money back warranty and optimum price in online channel with accomodate money back warranty.