Discount Policy Research Articles

Optimizing Supply Chain Design under Demand Uncertainty with Quantity Discount Policy

In typical business situations, sellers usually offer discount schemes to buyers to increase overall profitability. This study aims to design a supply chain network under uncertainty of demand by integrating an all-unit quantity discount policy. The objective is to maximize the profit of the entire supply chain. The proposed model is formulated as a mixed integer nonlinear programming model, which is subsequently linearized into a mixed integer linear programming model and hence able to obtain a global solution. Numerical examples in the manufacturing supply chain where customer demand follows normal distributions are used to assess the effect of quantity discount policies. Key findings demonstrate that the integration of quantity discount policies significantly reduces total supply chain costs and improves inventory management under demand uncertainty, and decision makers need to decide a balance level between service levels and profits.

Impact of the Discount Policies on the Purchasing Behaviour of Perishable Items

This study presents the results obtained from a survey intended to assess how consumer behavior towards perishable items is affected by discount policies and promotional strategies. To this aim, a survey was designed to investigate all the factors that, based on the findings of the scientific literature, can influence purchasing decisions. The survey was submitted to a sample of 496 consumers, randomly selected among the Italian population. From the results obtained, practical suggestions for the development of analytical and numerical models can be derived, thus allowing simulation and optimization of inventory management policies for perishable items, coupled with pricing policies aimed to minimize waste and maximise profit.

Joint Discount and Replenishment Parametric Policies for Perishable Products

We consider a joint discount and replenishment problem in a discrete periodic review fashion for the sale of a perishable product, characterized by limited deterministic shelf life, replenishment lead times, and stochastic demand. Customers decide what to buy according to a linear discrete choice model, balancing price and perceived quality, uniquely determined by the residual shelf life. The decisions we consider are: How many new items to order, the age of the items to be discounted, and how much discount to offer. In this context, we compare a set of policies mixing the constant order policy and the base stock one with some easy discounting policies, optimizing their parameters using a simulation-based optimization framework. To evaluate their performance in terms of revenue and quantity of scraped items, we consider four realistic instances for a grocery retailer characterized by products of different shelf life and variance of demand. Experiments show that best results are achieved by a base stock policy that discounts products of different ages based on a threshold: If the quantity of the inventory of a given age is greater than a threshold it applies a discount, otherwise no discount is proposed. In the presented configurations, this policy increases the average reward compared to policies that do not discount.

EOQ-Type Inventory Models Incorporating Discount Policies and Carbon Emission with Warehouse Capacity and Capital Constraints

EOQ-Type Inventory Models Incorporating Discount Policies and Carbon Emission with Warehouse Capacity and Capital Constraints

Pricing decisions through O2O commerce in a closed-loop green supply network and logistics under return and cooperative advertising policies

Our current societal practices of excessive consumption and disposal pose a significant threat to the environment, necessitating the implementation of appropriate policies and strategies to mitigate these destructive factors. Recycling used products can play a crucial role in preserving the environment. In this study, we propose a closed-loop green supply network (CLGSN) that consists of a manufacturer and a retailer who produce and sell green products through both offline and online channels. The Stackelberg approach is employed, with the manufacturer serving as the leader and the retailer as the follower. A revenue sharing policy is established between these members. To encourage customers to return their used products, we introduce four return policies under four scenarios for both offline and online channels. These policies are designed to drive customer engagement with sustainable practices while also promoting revenue growth for all network members. The present study investigates various return policies through dual channels, with the aim of identifying the most effective approach. The first scenario considers a Return & Loyalty Refund policy for offline channels, while a Return & Discount approach is evaluated for online channels. The second policy defines the Return & Loyalty Refund and Return & Loyalty Discount policies for offline and online channels, respectively. In the third scenario, a Return & Partial Refund policy is examined for offline channels, while a Return & Discount policy is studied for online channels. Finally, the fourth scenario explores a Return & Partial Refund policy in an offline channel and a Return & Loyalty Discount policy in an online channel. By comparing these different policies, this research aims to identify the optimal approach for managing returns across multiple channels. Overall, this research aims to provide insights into the effectiveness of different return policies in both offline and online channels, while also considering environmental sustainability. Ultimately, this research will help us improve customer satisfaction, increase profitability, and reduce waste. In fact, in this study we find that: (1) under the fourth scenario, the total profit chain has the highest value; (2) due to the practical return policies, more customers are convinced to return their used products and hence, more used products will be recycled and then remanufactured. So, as the results show, it improves the total profit chain; (3) the proposed return policies can both conserve the environment and coordinate the total profit chain. a numerical analysis is implemented to represent the relations clearly. We also evaluate how different parameters affect decision variables and profit chains by providing an analytical sensitivity.

Economic Growing Quantity Model with Mortality in Newborn Items and Inhibition Cost of Ammonia Production under All-Units Discount Policy

The amount of global ammonia (NH3) emissions is growing continuously, similar to the damage to the environment, particularly humans and animals, caused by those emissions. Various problems derived from pollution by ammonia emissions have attracted increasing attention in recent years. In particular, accumulation of ammonia in poultry farms is a concern for the poultry industry as it can lead to possible damage due to reduced bird performance, damage to the respiratory tract and skin of birds, and thus loss of customers. As birds age, ammonia production increases due to factors such as feeding and mobility, requiring the application of solutions to reduce it such as the use of fans, feed supplements, and temperature adjustments to improve bird health. These solutions impose additional costs on poultry farms to combat ammonia emissions. This study presents a general economic growing quantity (EGQ) model that includes the cost of inhibition of ammonia production during the growing period. In addition, the model is formulated under an all-units discount policy, where the price of newborn items is related to the size of the order purchased from the supplier. Furthermore, the model assumed that some newborn items are dead when the lot is received because of stress experiences and incidents during the catching, loading, transportation, and unloading. Finally, two versions of the proposed general EGQ model are presented: EGQ with no discount and EGQ with known slaughter age.

An Imperfect Inventory Model for Multi-Warehouses Under Different Discount Policies With Shortages

A multi-warehouse inventory model with shortage has been developed where demand is taken as deterministic. In reality, during production, if the machine works for a long time there may be a random breakdown and the system shifts from controlled to out of the controlled situation, in this time production system produces defective items. The retailer offers an all-unit quantity discount on the selling price of the item who in return gets a quantity-based discount on the purchase price of the item. The motive of this model is to study a multi-warehouse model for imperfect items under a quantity-based discount, where the defectives can be screened and then can be sold in a single batch where the decision variables are set as optimal ordering quantity and optimal shortage quantity, to maximize the total profit of the retailer. A solution procedure is given to find the optimal solution and a numerical example is given to illustrate this study. Sensitivity analysis is also performed to study the effect of the changes in parameter values on the optimal solution.

Peran Bank Indonesia dalam Menstabilkan Perekonomian dan Jumlah Uang Beredar Melalui Kebijakan Moneter

Based on the observation, that the background in this research is the economic condition and the money supply in Indonesia as seen from the last five years, then what policies have been issued by Bank Indonesia.This study aims to determine the mechanism and role of Bank Indonesia in maintaining economic stability and the money supply through Monetary Policy.The object of research in this is located at the Representative Office of Bank Indonesia, West Java Province. The type of this research is descriptive qualitative with a qualitative approach. The source of the data obtained in the form of primary data with field observations and interviews, namely by direct observation in the field and a question and answer process with resource persons to exchange information and ideas in obtaining information and using secondary data by obtaining information through the official website of Bank Indonesia and the Central Statistics Agency. The results of this study indicate that the mechanisms and roles performed by Bank Indonesia in maintaining economic stability and the Money Supply through Monetary Policy are first, through the BI 7DRR (Bank Indonesia 7 Day Repo Rate) interest rate and Open Market Operations, Second, by using policy instruments. Macroprudential and Discount Policy.

The Role of the Discount Policy of Prepayment on Environmentally Friendly Inventory Management

Nowadays, more and more consumers consider environmentally friendly products in their purchasing decisions. Companies need to adapt to these changes while paying attention to standard business systems such as payment terms. The purpose of this study is to optimize the entire profit function of a retailer and to find the optimal selling price and replenishment cycle when the demand rate depends on the price and carbon emission reduction level. This study investigates an economic order quantity model that has a demand function with a positive impact of carbon emission reduction besides the selling price. In this model, the supplier requests payment in advance on the purchased cost while offering a discount according to the payment in the advanced decision. Three different types of payment-in-advance cases are applied: (1) payment in advance with equal numbers of instalments, (2) payment in advance with a single instalment, and (3) the absence of payment in advance. Numerical examples and sensitivity analysis illustrate the proposed model. Here, the total profit increases for all three cases with higher values of carbon emission reduction level. Further, the study finds that the profit becomes maximum for case 2, whereas the selling price and cycle length become minimum. This study considers the sustainable inventory model with payment-in-advance settings when the demand rate depends on the price and carbon emission reduction level. From the literature review, no researcher has undergone this kind of study in the authors’ knowledge.

A Multi-Item Probabilistic Inventory Model that Considers Expiration Factor, All Unit Discount Policy and Warehouse Capacity Constraints

The characteristics considered in this study are probabilistic demand, perishable products, and warehouse constraints for multi-item inventory models. This condition occurs in several industries that consider perishable factors and warehouse constraints, namely companies that produce food, food sales agents, and retail that sell goods to end customers. The Karush-Kuhn-Tucker Condition approach was used to solve the warehouse capacity problem to find the optimum point of a constrained function. The results of the developed inventory model provide two optimal ordering times, namely ordering time-based on warehouse capacity and joint order time, and the two ordering time values ​​will be compared to determine which ordering time is optimal. In addition, the sensitivity analysis to the model was done to analyse the total inventory costs in a planning horizon, the time between goods ordering from one cycle to the next cycle, and the number of items that will expire. The parameters to be changed for the sensitivity test were warehouse constraint, a fraction of good condition goods, holding costs per unit per period, and all unit discount factors. The sensitivity analysis was done to see the behaviour of the total cost, time to order changes, and the quantity of perished products. The result of model testing and sensitivity analysis showed that total cost, based on joint order, is sensitive to the fraction of good condition products, discount, and holding cost. The joint order was not sensitive to the warehouse capacity. In general, the model was perceived as able to describe the behaviour of the model components.

Assess the Impacts of Discount Policies on the Reliability of a Stochastic Air Transport Network

In this study, an algorithm for reliability evaluation is proposed in order to assess the discount policy based on its effect on an air transport network. An air transport network is a typical stochastic air transport network (SATN) because its capacity (available seats) is regarded as stochastic. Under different discount policies, the term “reliability” refers to the ability to meet a certain travel demand within a limited budget. To better describe the flow of SATN, the methods of the sum of disjoint products and minimal paths are combined in the proposed algorithm. A reliability analysis is conducted at ranges of budgets and travel demands for a more accurate assessment. The outcomes of this study help the travel agents assess and select an appropriate discount policy, which is one of the important contributions. This study also contributes to enhancing the reliability fluctuation under the impact of multiple discount policies.

Cutting edge technologies to end food waste

Cutting edge technologies to end food waste

Two phases inventory model with variable cycle length under discount policy

This study deals with single stage inventory model where two phases are involved in an inventory cycle. In the first phase of the cycle, demand depends on both of inventory level and selling price while in the second, the demand depends on price only. Discount policy in selling price is offered in the second phase and inventory level at the end of the cycle is taken to be zero. Two models have been constructed on infinite time horizon. In the first model the demand rate is taken as the sum of two linear functions of inventory level and selling price and, in the second model, it is taken as a product of two power functions of inventory level and selling price. Our objective is to maximize average profit by considering ordering lot size and selling price as decision variables. Numerical examples of each model have been provided. The optimality criteria for the solutions are also checked by both graphically and numerically. Sensitivity analysis for different parameters in both models has been discussed in details to check the feasibility of the models.

Banking Interest and Discount Policy as a Tool for Monetary Regulation of Price Stability

The article examines the current state and prospects and directions of development of the bank’s monetary policy. An important problem of financial management in today’s market conditions is an effective monetary policy that links the required volumes of banking product with the acceptable overall level of rates and the relative value of the net interest spread and margin. Equilibrium monetary policy combines the rates of borrowed and placed funds with the strategic objectives of the development of banking institutions, maintaining their profitability and financial stability. The essence of the interest rate policy of NBU and commercial banks, its impact on the banking system as a whole is considered. The main goal of the interest rate policy are determined, the external and internal factors that shape it are considered. The basic principles on wich the interest rate policy of the bank is based and the stages of its formation are studied. The dynamics of the discount rate of the NBU for 2008-2019 is analyzed. It is established that the competitiveness and stability of the bank depends on a well-developed inrest rate policy, as a result of which the impact of interest rate risk extends to the financial results of the bank. The amount of interest also contributes to more efficient use of business entities’ own funds, because, keeping them in the bank on a current or deposit account, they have the opportunity to receive additional income.

PENGARUH STORE ATMOSPHERE, DISPLAY PRODUCT, DAN PRICE DISCOUNT TERHADAP IMPULSE BUYING (Studi kasus pada Indomaret di kota Denpasar)

This study aims to explain the effect of Store Atmosphere, product display, and Price Discount on Impulse Buying. The sample used was 90 respondents using purposive sampling technique that resided in Denpasar City, and had carried out Impulse Buying. Data were analyzed using regression analysis. The results of this study indicate that Store Atmosphere has a positive and significant effect on Impulse Buying; product display has a significant positive effect on Impulse Buying; and Price Discount has a significant positive effect on Impulse Buying. The implications of this research suggest that Indomaret always develop store atmoshere and product displays to be better, and still provide a Price Discount policy.

Planetary boundaries of consumption growth: Declining social discount rates

We introduce the logistic model of consumption growth, which captures a negative feedback preventing an unlimited growth of consumption due to finite biophysical resources of our planet. This simple dynamic model allows for derivation of the expression describing the declining long-term tail of a social discount curve. The latter plays a critical role in, e.g., climate finance with benefits on current investments deferred to centuries from now. The growth rate of consumption is irregularly evolving in time, which makes estimation of an expected term-structure of consumption growth and associated social discount rates a challenging task. Nonetheless, observations show that the problem at hand is perturbative with the small parameter being the product of an average strength of fluctuations in the growth rate and its autocorrelation time. This fact permits utilization of the cumulant expansion method to derive remarkably simple expressions for the term-structure of expected consumption growth and associated discount rates in the bounded economy. We demonstrate that the dynamic effect related to the planetary resource constrains could become a dominant mechanism responsible for a declining long-term tail of a social discount curve in a distant future. The derived results can help to shape a more realistic long-term social discounting policy. Furthermore, with the obvious redefinition of the key parameters of the model, obtained results are directly applicable for description of expected long-term population growth in stochastic environments.

Which is More Effective in Guiding Households to Choose Bus Travel–A Transit Subsidy Policy or Discount Policy?

The continuous increase in the number of private cars has caused an imbalance in the travel of cars and buses. This phenomenon has become a bottleneck restricting urban transportation economy and sustainable development. This paper examines the effectiveness of policy options in motivating travelers to choose buses instead of cars. Using of reference dependence describes mode choice behaviors with two attributes under different public transit policies in uncertain conditions. At the same time, we also consider using the bus fare concession strategy to guide the traveler to reasonably choose the bus travel, and establish a bi-level programming model to optimize the bus fare proportions. Among them, the lower-level planning considers the two attributes impact of traffic policy on travelers' decision to bus travel. Using the upper-level planning, the optimal fare preferential proportion for different policy decisions is decided considering the lowest total system cost. The study highlights that the transit subsidy policy can be employed to guide travelers to choose bus travel preferentially. Model effectiveness is verified using numerical examples. The model is indispensable for the implementation of future traffic demand management strategies.

The Importance of Time and Space: A Multidimensional Assessment of How Citizens Discount Policy Consequences

How does the combination of spatial and temporal distance affect policy support? Many policy challenges are characterized by long time horizons (e.g., multiple generations) and high geographic dispersion (e.g., multiple countries). However, existing studies which characterize how citizens discount policy benefits typically treat these dimensions in isolation. In this study, we use conjoint experiments to assess how citizens discount policy benefits across both time and space. Through a national survey in Japan, we find that citizens discount policy consequences in their own country but which are two generations removed (40-50 years) at a similar rate that they discount contemporary benefits that primarily accrue in other countries. Moreover, these effects are additive, so policies which are distant in both dimensions receive the lowest levels of support. This study underscores the unique challenges of garnering political support for the provision of global, multi-generational public goods.

An Integrated Closed-loop Supply Chain Configuration Model and Supplier Selection based on Offered Discount Policies

In this paper, a mathematical programming model is presented for integrated problem of closed loop supply chain network design and supplier selection. The suppliers propose discount policy based on purchase amount and loyalty of buyers which are both taken from the elements of RFM (Recency, Frequency and Monetary) technique. The main objective of this paper which is formulated by a mixed-integer programming model is to minimize the total cost through determining location of facilities, production plan, inventory levels, flows between facilities, transportation type, purchasing amount and selecting best supplier based on a beneficial relationship. Sensitivity analysis is carried out to validate the model and examine the effects of considering discount according to purchase amount and loyalty on the supply chains costs and decisions. Computational results show the effectiveness and usefulness of the model.

The Capacitated Supplier Selection problem with Total Quantity Discount policy and Activation Costs under uncertainty

We study the Capacitated Supplier Selection problem with Total Quantity Discount policy and Activation Costs, a procurement problem where a company needs a certain quantity of different products from a set of potential suppliers, and introduce its variant under uncertainty. In its deterministic form, the problem aims at selecting a subset of the suppliers and the relative purchasing plan satisfying the demands at minimum cost, taking into account that the suppliers offer discounts based on the total quantity of products purchased and that the activation of a business activity with a supplier has a fixed cost. However, due to the long-term nature of the problem, several parameters may be affected by uncertainty. Thus, we propose a two-stage stochastic programming formulation with recourse, highlighting the strategic and the operational decisions involved, as well as the effect of the different sources of uncertainty. In particular, we focus on the cases in which only the products price or only the products demand are stochastic. The general model and the recourse actions are adapted for these special cases, and the resulting modeling approaches are validated on a large set of instances. The experiments show the convenience of having in place models considering uncertainty explicitly with respect to using expected values for approximating it, and give rise to interesting managerial insights. Due to the computational burden of solving the resulting stochastic models (for a sufficiently large number of scenarios), we also propose a branch-and-cut solution framework based on valid inequalities and other accelerating mechanisms.