Abstract
Two distinct inventory models are investigated for a deteriorating item under the frequency of advertisement and market price-sensitive aggregate demand where the deterioration percentage complies with Weibull distribution. In one model, the stock-out environment is not studied, while another one handles the stock-out situation by moderately backordering based upon the waiting time duration for the products. Advance payment, another realistic feature, is implemented by paying off a fraction of the acquisition cost amid single or many equal segments from the order placing moment to receiving moment whereas the remaining fraction is accomplished at the order delivery instant by the practitioner to the supplier. The utmost aim is computing the inventory policy along with the market price and marketing strategy to reach the highest total profit for both models. The models formulated here extend several inventory studies previously developed in the literature and suggest several important outcomes. This makes two exceedingly nonlinear and mixed-integer optimization problems, which are elucidated by constructing two efficacious algorithms. Two numerical illustrations are accomplished to perceive the working competence of the algorithms and the consequences of the parameters on the practitioner's optimal policy are highlighted in a tabular form executing a sensitivity examination. Based on the performed analyses, finally, some decision-making salient findings are obtained.
Highlights
A plethora of research studies have been reported by quite a lot of researchers in the related area/field of permissible delay in payments whereas very few research works have been studied taking into consideration of advance payment scheme
Advance payment scheme ensures payment as well as delivering the goods on time. e conception of early payment was introduced in a study of Zhang [1]
Gupta et al [3] proposed another model taking all the parameters into interval-value under early payment scheme, solved by genetic algorithm. angam [4] studied an advance payment inventory model employing a discount on market price for a decay product
Summary
A plethora of research studies have been reported by quite a lot of researchers in the related area/field of permissible delay in payments whereas very few research works have been studied taking into consideration of advance payment scheme. Duary et al [45] investigated the consequences of both prepayment and delay payment schemes on the decision-making policy for a deteriorating item under limited storage capacity. Taleizadeh [12], Khan et al [14], and Rahman et al [17] investigated the consequences of prepayment on the practitioner’s best inventory strategy for decay items where the decay rate was adopted as constant. E present work articulates two inventory problems considering the product’s demand is dependent on price and on number of advertisements with mixed prepayment and cash-on-delivery scheme. To the authors’ best knowledge, this work investigates the impact of mixed cash and prepayment on the optimal pricing and inventory policies for the first time when the products’ deterioration follows Weibull distribution. (7) Prepayment is accomplished by only α1 percentage of the purchase price by dint of n equal segments within L time units prior to the received moment of the products while the remaining (1 − α1) percentage is accomplished on the receiving moment of the products by the practitioner
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
