2,036 research outputs found

    Optimal Inventory Policies for Weibull Deterioration under Trade Credit in Declining Market

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    The aim of this study is to develop mathematical model for Weibull deterioration of items in inventory in declining market when the supplier offers his retailers a credit period to settle the accounts against the dues. The computational steps are explored for a retailer to determine the optimal purchase units which minimize the total inventory cost per time unit. The numerical examples are given to demonstrate the retailer’s optimal decision. A sensitivity analysis is carried out to study the variations in the optimal solution.Weibull deterioration, trade credit, declining market

    Optimal Ordering and Trade Credit Policy for EOQ Model

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    Trade credit is the most prevailing economic phenomena used by the suppliers for encouraging the retailers to increase their ordering quantity. In this article, an attempt is made to derive a mathematical model to find optimal credit policy and hence ordering quantity to minimize the cost. Even though, credit period is offered by the supplier, both parties (supplier and retailer) sit together to agree upon the permissible credit for settlement of the accounts by the retailer. A numerical example is given to support the analytical arguments.Trade Credit, Optimal ordering quantity, Lot-size

    Supply chain finance for ameliorating and deteriorating products: a systematic literature review

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    Ameliorating and deteriorating products, or, more generally, items that change value over time, present a high sensitiveness to the surrounding environment (e.g., temperature, humidity, and light intensity). For this reason, they should be properly stored along the supply chain to guarantee the desired quality to the consumers. Specifically, ameliorating items face an increase in value if there are stored for longer periods, which can lead to higher selling price. At the same time, the costumers’ demand is sensitive to the price (i.e., the higher the selling price the lower the final demand), sensitiveness that is related to the quality of the products (i.e., lower sensitiveness for high-quality products). On the contrary, deteriorating items lose quality and value over time which result in revenue losses due to lost sales or reduced selling price. Since these products need to be properly stored (i.e., usually in temperature- and humidity-controlled warehouses) the holding costs, which comprise also the energy costs, may be particularly relevant impacting on the economic, environmental, and social sustainability of the supply chain. Furthermore, due to the recent economic crisis, companies (especially, small and medium enterprises) face payment difficulties of customers and high volatility of resources prices. This increases the risk of insolvency and on the other hand the financing needs. In this context, supply chain finance emerged as a mean for efficiency by coordinating the financial flow and providing a set of financial schemes aiming at optimizing accounts payable and receivable along the supply chain. The aim of the present study is thus to investigate through a systematic literature review the two main themes presented (i.e., inventory management models for products that change value over time, and financial techniques and strategies to support companies in inventory management) to understand if any financial technique has been studied for supporting the management of this class of products and to verify the existing literature gap

    Optimal Deteriorating Inventory Models for Varies Supply Life Cycles

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    Agriculture items, such as fruits and vegetables, have different supply and demand characteristics during a harvest period. Fruits supply in the first and end of harvest time are not reliable so sometimes supply are not available when needed. Fruits demand is different during harvest season. In the first harvest season, demand depends on price and at the end of harvest time, the demand depends on presentation of the items. In this study, inventory deteriorating items models for the first and the end of the harvest season are developed. Since closed-form solutions cannot be derived from the models, a Genetic Algorithm and a heuristic method are used to solve the problems. A numerical example and sensitivity analysis are conducted to illustrate the model and get insights. The sensitivity analysis shows that the supplier will increase his price when supply is not reliable at the early harvest period.  The results show that the unreliable supply is susceptible to the total cost at the end of the harvest period

    Quantitative Models for Centralised Supply Chain Coordination

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    Joint Pricing and Inventory Control for Non-instantaneous Deteriorating Items with Stochastic Demand

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    In recent years inventory and pricing of deteriorating items has gained an enormous attention by many researchers. In this study, an inventory system for non-instantaneous deteriorating items with stochastic demand is modeled. This model has the assumptions that shortages are allowed and backlogging rate is variable where the last one is defined as a function of waiting time for the next replenishment. The objective is to maximize the total profit per unit time by finding the optimal selling price and replenishment schedule simultaneously. The concavity of the function is proved with a unique optimal solution. Thereby we provide an algorithm for finding the optimal solution. Finally, the authors present a numerical example to illustrate the theoretical results. A sensitivity analysis for the optimal solution with respect to major parameters is also carried out

    Controllable deterioration rate for time-dependent demand and time-varying holding cost

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    In this paper, we develop an inventory model for non-instantaneous deteriorating items under the consideration of the facts: deterioration rate can be controlled by using the preservation technology (PT) during deteriorating period, and holding cost and demand rate both are linear function of time, which was treated as constant in most of the deteriorating inventory models. So in this paper, we developed a deterministic inventory model for non-instantaneous deteriorating items in which both demand rate and holding cost are a linear function of time, deterioration rate is constant, backlogging rate is variable and depend on the length of the next replenishment, shortages are allowed and partially backlogged. The model is solved analytically by minimizing the total cost of the inventory system. The model can be applied to optimizing the total inventory cost of non-instantaneous deteriorating items inventory for the business enterprises, where the preservation technology is used to control the deterioration rate, and demand & holding cost both are a linear function of time

    Static and dynamic inventory models under inflation, time value of money and permissible delay in payment

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    In this research a number of mathematical models were developed for static and dynamic deterministic single-item inventory systems. Economic factors such as inflation, time value of money and permissible delay in payment were considered in developing the models. Nonlinear optimization techniques were used to obtain the optimal policies for the systems.;First, a static single-item inventory model was considered in which shortages are allowed and a delay is permitted in payment. In this case, suppliers allow the customers to settle their accounts after a fixed delay period during which no interest is charged.;An extension of the model was then considered in which all cost components of the model are subject to inflation and discounting, with constant rates over the planning horizon. The mathematical model of the system was developed and a nonlinear optimization technique, Hooke and Jeeves search method, was used to obtain the optimal policies for the system.;A dynamic deterministic single-item inventory model was also considered in which the demand was assumed to be a linear function of time. Suppliers allow for a delay in payment and the cost components are subject to inflation and discounting with constant rates and continuous compounding. The Golden search technique was used to obtain the optimum length of replenishment cycle such that the total cost is minimized.;Computer applications using Visual Basic and Mathematics were developed and several numerical example were solved
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