Advertisement Dependent Demand Research Articles

Supply chain model having stochastic lead time demand with variable production rate and demand dependent on price and advertisement

In this present study, a single manufacturer and single retailer supply chain management model are formulated for a single product. We specifically look at a supply chain with variable production rate, stochastic lead time demand, and price- and advertisement-dependent demand. By incorporating these complex aspects into a model, which enables to examine their combined effects on supply chain performance, this study adds to the body of knowledge. The study reveals unique insights into the complex interplay between pricing tactics, advertising efforts, production dynamics, and the variability brought on by stochastic lead times through meticulous study and modelling. Finally, the total system profit is calculated and optimized with all the decision variables. A classical approach is performed to obtain the optimized solution of the joint profit function along with the decision variables. Two models are discussed in the study: 1)The model with normally distributed lead time demand and 2) the model with distribution-free lead time demand. {The joint profit function of the supply chain is found to be lesser by 1% for the normally distributed lead time demand than the distribution-free pattern. The comparison of the shipment policies and the safety factors for the different distribution patterns of the lead time demand has also been shown. Though the huge increment in the safety factor for unknown lead time demand distribution may help in reducing the uncertainty factor and disruptions in the supply chain, but also it may unnecessarily tie up more capital which could be invested in other sectors of the supply chain.

A Collaborating Supply Chain Inventory Model Including Linear Time-Dependent, Inventory, and Advertisement-Dependent Demand Considering Carbon Regulations

A Collaborating Supply Chain Inventory Model Including Linear Time-Dependent, Inventory, and Advertisement-Dependent Demand Considering Carbon Regulations

Managing inventory of Non-immediately degrading items with partial backlog and discounting cash flow under inflation

Advertising is one of the most efficient methods of spreading the popularity of a product among clients of different demographics and socioeconomic backgrounds. The purpose of this work is to develop an inventory model for non-instantaneous deteriorating items with price and advertisement dependent demand under a suitable delay in payments. We used the discount cash flow method to create the model using the sale price and marketing cost over an indefinite planning horizon in inflationary environment. Throughout the cycle, the salvage value of deteriorating units is considered. Shortages that are partially backlogged are considered. The cycle duration and optimal ordering quantity solution are determined in this inventory model. The inventory model's critical parameters are subjected to numerical examples and sensitivity analysis. Following the sensitivity analysis, the management implications are discussed.

An Inventory Model for Decaying Items Under Preservation Technological Effect with Advertisement Dependent Demand and Trade Credit

An Inventory Model for Decaying Items Under Preservation Technological Effect with Advertisement Dependent Demand and Trade Credit

A Preservation Technology Model for Deteriorating Items with Advertisement Dependent Demand and Partial Trade Credit

This study presents a preservation technology model for deteriorating items with constant rate of deterioration. The requirements for the items are received as a function of advertisement frequency and selling price. The two types of trade credit is the main focus of this study. First one is provided by the supplier to the retailer and another one is the partial trade credit offered by the retailer to the customer. The optimal policy is presented to earn maximum profit with optimal values of selling price, advertisement frequency, preservation technology and total cycle length. The study is numerically verified with sensitivity analysis to check the sensitivity of the model.

Effect of reliability on varying demand and holding cost on inventory system incorporating probabilistic deterioration

<p style='text-indent:20px;'>This paper presents a mathematical framework to derive an inventory model for time, reliability, and advertisement dependent demand. This paper considers the demand rate is high initially, and then the demand rate reduces later stage, which reflects the situation related to cash in hand. The uncertain deterioration of the product presents through Uniform, Triangular, and Double Triangular probability distributions. The holding cost of the proposed inventory system is dependent on the reliability of the item to make this study a more realistic one. This proposed inventory system allows the situation of shortage and partially backlogged at a fixed rate. Numerical examples, along with managerial implications and sensitivity analysis of the inventory parameters, discuss to examine the effect of changes on the optimal total inventory cost.</p>

Economic ordering policy for non‐instantaneous deteriorating items with price and advertisement dependent demand and permissible delay in payment under inflation

In recent years, offering credit period by the supplier to the retailer has become a usual strategy. Hence, in the present work, an inventory model for noninstantaneous deteriorating items is framed considering money inflation and time discounting, where a permissible delay period is offered by the supplier as an alternative to price discount. Further, the salvage value associated with deteriorated units is considered, and the shortages allowed are partially backlogged. Focus is made on obtaining the optimal replenishment policy by minimizing the total inventory cost. This is achieved by developing mathematical theorems that determines the existence and the uniqueness of the optimal solutions. Moreover, computational algorithm is designed and illustrated using numerical examples and analysis. Various managerial insights obtained from the analysis are also highlighted.

An integrated imperfect production system with advertisement dependent demand using branch and bound technique

This paper develops an integrated imperfect production-inventory system consisting of a retailer and a manufacturer who produces breakable items. As breakable items are very sensitive to transport, in this paper, to stimulate the retailer, the manufacturer offers (1) free transportation subject to the condition that the retailer must have to order a minimum replenishment quantity specified by the manufacturer and (2) a credit period depending on the replenishment quantity. Moreover, malfunctioning of the production system increases due to several kinds of problem and consequently it produces a mixture of perfect and imperfect quality items. So, to maintain the reliability of the production system, development cost has been incorporated. Also to aware the customer about the reliability of the production system, the manufacturer has paid attention to give a constant amount of advertisement regularly during his/her production period. Henceforth, the advertisement dependent demand has been considered here. Under such circumstances, an integrated profit function has been developed and solved by branch and bound technique to obtain the optimum values of the system. From numerical studies, it is revealed that in case of incorporation of the advertisement, the retailer’s average profit, the manufacturer’s average profit and the average integrated profit are higher than that in the case without advertisement.

Non-instantaneous deteriorating inventory model under the joined effect of trade-credit, preservation technology and advertisement policy

PurposeThis paper aims to simultaneously consider an inventory model with price and advertisement dependent demand, non-instantaneous deterioration rate with preservation technology investment, partially backlogged shortages and trade credit.Design/methodology/approachThis model considered a non-instantaneous deterioration, which starts after a certain storage period with a constant rate. The proposed model focused on two things. The first one is to reduce the deterioration rate by preservation technology investment, and the second one is using an appropriate trade credit period to maximize the total profit. The classical optimization technique is used to solve the problem.FindingsThe authors found that trade credit, advertising cost, preservation technology affect the total cost and selling price is one of the most important decision variables affecting the model.Practical implicationsThis study provides a reference for a manufacturer and a retailer on making inventory decisions under different pricing, advertisement expense, preservation technology investment and credit strategies. Four cases are presented to illustrate the inventory model. Sensitivity analyses are performed to gain managerial insights for decision-making.Originality/valueThe study simultaneously considers a non-instantaneous deterioration inventory model, trade-credit, and preservation technology and advertisement policy. From our literature search, no researcher has undergone this type of study.

An Inventory Model with Advertisement Dependent Demand and Reliability Consideration

In present study a production-reliability model is explored, in which the demand is taken as function of advertising frequency and selling price. The production is taken instantaneous with infinite rate of production and order level dependent production cost. The non-instantaneous deteriorating items are stored at a holding cost, which is the direct function of production cost. The system offers a delay period for their customers to hike the demand rate. The optimal values of total cost function, in which order level, set-up cost, advertisement frequency and process reliability factor are the treated as decision variables. The optimality of the model is presented by graphical description with suitable sensitivity analysis.

Two –warehouse model with preservation technology investment and advertisement dependent demand over a finite time horizon

In present article an optimal policy is well established for advertisement schemes with preservation technology inputs. The items are deteriorating in nature and are stored at two-warehousing system. The demand is function of advertising frequency and selling price. In stock out situation partially backlogged shortages are inculcated to make the model more general. The advertising frequency, preservation cost are treated as main decision variables in development of the optimal cost function. Whole study is done under the effect of inflation over a finite time planning horizon. This study further can be modified by incorporating other parameters of inventory control and system.

An inventory model for deteriorating item with frequency of advertisement and selling price dependent demand under mixed type trade credit policy

In this paper, we have developed an inventory model for a deteriorating item with selling price and frequency of advertisement dependent demand of an item under the mixed type financial trade credit policy. Shortages are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of next lot. In this model, the deterioration rate follows three-parameter Weibull distribution. Transportation cost is dependent on the lot-size as well as the distance from the source to the destination. The corresponding model has been formulated and solved by generalised reduced gradient-based method. Numerical examples have been considered to discuss the results and the significant features of this model. Finally, based on these examples, the effects of different parameters have been studied by sensitivity analyses taking one parameter at a time keeping the other parameters as same.

Imperfect production inventory model with production rate dependent defective rate and advertisement dependent demand

In this article, an economic production quantity (EPQ) model with imperfect production system and advertisement dependent demand has been presented. The advertisement rate has been assumed to be a function of time which has been increased with respect to time at a decreasing rate i.e., it has grown exponentially with respect to time but rate of growth gradually has decreased. Here, the rate of producing defective units has been followed to be a function of production rate. Also, the produced units have been inspected in order to screen the defective units but the screening rate is less than or equal to the production rate and greater than the demand rate. For the developed EPQ model, the total profit has been maximized to obtain the optimum production rate and production run time in the system. Here, algorithms have been developed for finding the optimal profit of the imperfect production inventory model. Finally, different numerical examples have been considered to illustrate the feasibility of the model taking different special cases in the system and then some sensitivity analyses have been carried out to get the impact of some parameters on the objective function of the model.

Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand

This paper focuses on an economic order quantity model for deteriorating items with time and advertisement dependent demand under the effect of inflation. The items in inventory deteriorate at a constant rate. The expenses on advertisement depend on the effort of the firm. The objective of the study is to maximize profit function with respect to initial lot size and investment in advertisement. The concavity of the profit function is shown graphically with respect to the decision variable. Numerical example is provided to illustrate the model. Further, sensitivity analysis is carried out to study the effects of different parameters.

Optimal Lot Sizing Policy for Non-instantaneous Deteriorating Items with Price and Advertisement Dependent Demand Under Partial Backlogging

This article deals with an economic order quantity model for non-instantaneous deteriorating items with price and advertisement dependent demand pattern. The salvage value for deteriorating items is considered in this model. Shortages are allowed and partially backlogged. The backlogging rate depends upon the waiting time for the next replenishment. A mathematical model is framed to obtain the optimal replenishment policy which aids the retailer to minimize the total inventory cost. The necessary and sufficient condition for the existence and uniqueness of the optimal solution are also derived with useful theoretical results. Numerical examples are provided to illustrate the results obtained. Sensitivity analyses are carried out. The managerial implications and the effects of key parameters are studied to analyze the behavior of the model.

Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition

A B S T R A C T This article studies the manufacturer's pricing strategy in a supply chain with a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies wholesale prices to two retailers who face advertisement dependent demand. Based on this gaming structure, two mathematical models are developed - the cooperative advertising model where manufacturer shares a fraction of retailers' advertising costs and the non-cooperative advertising model where manufacturer does not share any retailer's advertising expenses. The optimal strategies of the manufacturer and retailers are determined and a numerical example is taken to illustrate the theoretical results derived. We show that cooperative advertising policy is beneficial not only for the participating entities but also for the entire supply chain.

An EPQ model for deteriorating items with variable production cost, time dependent holding cost and partial backlogging under inflation

This paper develops an economic production quantity (EPQ) model with price and advertisement dependent demand under the effect of inflation and time value of money. Here, the rate of replenishment is considered to be a variable and the generalized unit production cost function is formulated by incorporating the several factors like raw material, labour, replenishment rate, advertisement and other factors of the manufacturing system. The selling price of an unit is determined by a mark-up over the production cost. In most of the inventory model for perishable items, the holding cost has been considered as a constant function. But in realistic situation this cost is varying according to time. In this model, the holding cost per unit of the item per unit time is assumed to be an increasing linear function of time spent in storage. Also in this model, shortages are allowed and we consider that shortage occurs before the starting of inventory. This type of inventory is called SFI (shortage followed by inventory) policy. In the model, the customers are viewed to be impatient and a fraction of the demand is exponentially backlogged. This fraction is a function of the waiting time of the customers. This model aids in minimizing the total inventory cost by finding the optimal cycle length, optimal production and the optimal order quantity. The model is extended to the case of non-perishable product also. The optimal solution of the model is illustrated with the help of a numerical example.

Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation

This paper deals with an economic order quantity (EOQ) model for non-instantaneous deteriorating items with price and advertisement dependent demand pattern under the effect of inflation and time value of money over a finite planning horizon. In this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This paper aids the retailer in minimising the total inventory cost by finding the optimal interval and the optimal order quantity. An algorithm is designed to find the optimum solution of the proposed model. Numerical examples are given to demonstrate the results. Also, the effect of changes in the different parameters on the optimal total cost is graphically presented and the implications are discussed in detail.