Bhavin J. Shah
Other affiliations: Gujarat University
Bio: Bhavin J. Shah is an academic researcher from Indian Institutes of Management. The author has contributed to research in topic(s): Trade credit & Profit (economics). The author has an hindex of 3, co-authored 7 publication(s) receiving 17 citation(s). Previous affiliations of Bhavin J. Shah include Gujarat University.
TL;DR: The results show that the vendor gets more advantage when the collaborative model is applied and the buyer's profit is bigger in the Stackelberg game model than the Collaborative model.
Abstract: In this study, inventory models are developed for coordinated supply chain using Stackelberg game framework. In the proposed model, customer demand is assumed to be price and time sensitive. The buyer attempts to adjust retail selling prices by charging premium or offering discount to the floor selling price depending upon the optimistic or declining market conditions. The aim of this research paper is to analyse the optimal pricing policy that maximises total profit for both the players under the principles of coordination, and competition. Some numerical examples are given to study the model. The results show that the vendor gets more advantage when the collaborative model is applied and the buyer’s profit is bigger in the Stackelberg game model than the collaborative model.
Abstract: An inventory model for deteriorating items with finite production rate and stochastic demand rate is developed when the supplier offers delay period to the retailer for due payment against purchases and the retailer in turn extends the trade credit offer to its customers. This policy of passing on of the credit period is well known as two-level of credit financing. Items in the system follow stochastic demand behavior that are produced with finite production rate and subjected to constant rate of deterioration. The model is developed with an objective to minimize total expected cost of retailer as it is assumed to be a dominant player in the supply chain. Necessary and sufficient conditions for existence and uniqueness of the optimal solution are obtained and established to minimize the retailer’s total expected cost. Results obtained are validated with the help of numerical examples. Sensitivity analysis of various parameters is carried out to gain meaningful managerial insights.
01 Jan 2003
Abstract: The analysis of the deterministic economic order quantity problem for time dependent deterioration of units seeks to minimize the average cost of inventory systems. An alternative numerical analysis is described in this paper to examine the present value of the discounted costs over an infinite horizon. The deterioration rate is a continuou s random variable and follows a two parameter weibull distribution. Also a sensitivity analysis is studied by some numerical illustrations. Comparison of two solutions is also discussed.
01 Jan 2014
Abstract: The supplier presents its buyer a credit period to settle the account which attracts more buyers and increases market demand. However, the offer of credit period invites default risk for the supplier. In this paper, we also implement efficient preservation technology for our inventory system of deteriorating items. The demand is considered to be quadratic and is dependent of permissible trade credit. The objective is to maximize the total profit per unit time with respect to optimal investment to be made, credit period and procurement quantity. Numerical example is given to illustrate the theoretical results and concavity of total profit is established. Managerial observations are outlined using sensitivity analysis.
01 Jan 2006
Abstract: A time dependent deteriorating inventory model is developed for a deterministic inventory system with constant demand in the presence of trade credit. The discounted cash flows (DCF) approach is used for the problem analysis, which allows a proper recognition of the financial implication of the opportunity cost and out – of – pocket costs. It also permits an explicit algo rithm of the exact timing of cash – flows associated with an inventory system. A numerical example is considered to a give comprehensive sensitivity analysis of the developed model.
TL;DR: An up-to-date review of perishable inventory models, but also of the joint key topics of publications from January 2012 until December 2015 in the research area of deteriorating inventory models is given.
Abstract: The aim of this work is not only to give an up-to-date review of perishable inventory models, but also of the joint key topics of publications from January 2012 until December 2015 in the research area of deteriorating inventory models. The advantage of this review is the ability to quickly find papers according to given key topics. Methodically, this paper is based on the literature review of Bakker et al. (2012) . However, we slightly modify the classification of inventory models of perishable goods in our work, and extend the existing key topics.
TL;DR: A systemic review of perishable inventory models along various dimensions to fill the gap in the perishable Inventory literature and help in formulating effective strategies to design of an effective and efficient inventory management system for perishable items.
Abstract: The purpose of this paper is to review and analyze the perishable inventory models along various dimensions such as its evolution, scope, demand, shelf life, replenishment policy, modeling techniques and research gaps.,In total, 418 relevant and scholarly articles of various researchers and practitioners during 1990-2016 were reviewed. They were critically analyzed along author profile, nature of perishability, research contributions of different countries, publication along time, research methodologies adopted, etc. to draw fruitful conclusions. The future research for perishable inventory modeling was also discussed and suggested.,There are plethora of perishable inventory studies with divergent objectives and scope. Besides demand and perishable rate in perishable inventory models, other factors such as price discount, allow shortage or not, inflation, time value of money and so on were found to be combined to make it more realistic. The modeling of inventory systems with two or more perishable items is limited. The multi-echelon inventory with centralized decision and information sharing is acquiring lot of importance because of supply chain integration in the competitive market.,Only peer-reviewed journals and conference papers were analyzed, whereas the manuals, reports, white papers and blood-related articles were excluded. Clustering of literature revealed that future studies should focus on stochastic modeling.,Stress had been laid to identify future research gaps that will help in developing realistic models. The present work will form a guideline to choose the appropriate methodology(s) and mathematical technique(s) in different situations with perishable inventory.,The current review analyzed 419 research papers available in the literature on perishable inventory modeling to summarize its current status and identify its potential future directions. Also the future research gaps were uncovered. This systemic review is strongly felt to fill the gap in the perishable inventory literature and help in formulating effective strategies to design of an effective and efficient inventory management system for perishable items.
Abstract: The business world survives on trade credit financing. The three players, viz. supplier, retailer, and customer, are building blocks of any business firm. The retailer receives credit period from the supplier to settle the accounts due against the purchases. For retailer, the customer is a prominent stakeholder. To withstand the competitive market and generate credit sales and cash sales, the retailer offers credit period to attract more customers. This will boost the demand for the retailer and consequently the supplier. The offer of credit period by the result may result in bad-debt loss when the customer declares incapability to do the payment. The situation worsens when the items in the inventory system are subject to deterioration. In this article, a mathematical model is formulated to determine the optimal replenishment time and credit period under two levels of trade credit financing when the demand and bad-debt loss depend on the length of the credit period. The profit per unit time of the retailer is maximized by optimizing the cycle time and date-terms credit period when items in the inventory deteriorate at a constant rate. A numerical example is given to validate the proposed model. Sensitivity analysis is carried out and observations are deduced.
01 Jan 2014
Abstract: An inventory model with imperfect production process is developed for time-declining demand pattern. Imperfect production process results into a mix of good quality and defective items. Some of the defective items can be corrected to an extent with additional reworking cost. Reliability of the production process is considered as the decision variable. Optimum value of the reliability parameter helps in long-term strategic decisions regarding investments in production technology; process know-how and product design complexity. Model is developed with an objective to maximize total profit using Euler-Lagrange theory in a single item setting. Effects of inflation and time value of money on total profit are also considered. Results obtained are validated by numerical example. Sensitivity analysis of various parameters is carried out to derive managerial insights.
01 Aug 2018
Abstract: This article presents a two-echelon supply chain model for deteriorating items, consisting of a single manufacturer and a single retailer, where the customer's demand to the retailer depends on advertisement and the displayed stock level of the retailer. Due to the imperfect production system, the manufacturer produces a certain quantity of defective items with the perfect products. The manufacturer inspects all the products immediately after production and sells the ideal quality items to the retailer. To entice the retailer to purchase more products, the manufacturer offers the retailer a trade-credit policy so that the retailer can get a chance to settle his account before the payment for the products. We have developed a cost function of this model. Numerical examples have been presented to clarify the applicability of this model and the sensitivity analysis with respect to different parameters involved with the model has been performed to study the effect of the parameter change on the decision variables.
Author's H-index: 3