This paper presents an inventory model with a constant rate of deterioration of the product, and shortages are allowed at the end of the cycle. The stock-dependent and price-sensitive demand have b...

Discount pricing policy for deteriorating items under preservation technology cost and shortages

Nowadays in use of, the offer of delay payment from supplier is very remarkable implement to boost the market demand by attracting more retailers. Furthermore, offer of delay payment is advantageous for retailers as they do not have to pay the supplier immediately at the time of procurement. In this chapter, we study inventory policies with trade credit from a single supplier to two retailers. We consider the item with deterioration as loss of utility is the real situation of items like fruits, vegetables, juices, ice-creams, etc. To reduce deterioration of the item, vendor spends capital on preservation technology to preserve the item. Here, time dependent quadratic demand is discussed which is suitable for the items whose demand increases primarily and afterward it starts to decrease. Formerly, we present the centralized inventory system in which supplier and retailers willingly take joint decision. Succeeding, we address the decentralized inventory system in which a supplier and both retailers take individual decisions. Inventory Control Policies for Deteriorating Item With Preservation Technology, Quadratic Demand, and Trade Credit for a Single SupplierTwo Retailers Supply Chain: A Centralization vs. Decentralization Approach

Inventory Control Policies for Deteriorating Item With Preservation Technology, Quadratic Demand, and Trade Credit for a Single Supplier-Two Retailers Supply Chain: A Centralization vs. Decentralization Approach

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.

Optimal Preservation Technology Investment, Credit Period and Ordering Policies for Deteriorating Inventory under Credit Period Dependent Quadratic Demand

Each and every supply chain or logistics structure is subject to disruption. This disruption may be due to uncertainty or unintended events like instrument break down, unavailability of raw materials, some crisis, natural calamities or strikes. This article first establishes the production time when there is no disruption and afterwards when system gets disrupted. After disruption in the production, we investigate whether it has been resulted in any amount of shortages or not. To maintain the goodwill of the company, an additional replenishment is suggested if there are any shortages. For disrupted production system, disruption time is calculated. Also in the case of shortages, when to replenish and how much to replenish that is also shown in the article. Moreover, quadratic demand for products is analyzed in the present article. This type of demand initially increases with time up to some extent and then it starts to decrease. In addition, the units in the inventory system are subject to deterioration at a constant rate. Numerical example and related graphical studies are given to validate the results. Effects of variations in inventory parameters on production time are shown for manufacturers to take advantageous decisions.

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Dushyant Kumar

Papers

Optimal Preservation Technology Investment, Credit Period and Ordering Policies for Deteriorating Inventory under Credit Period Dependent Quadratic Demand

Manufacturing process with disruption under Quadratic Demand for Deteriorating Inventory