Unit Selling Research Articles

A sustainable manufacturing–remanufacturing inventory model with price and green sensitive demand for defective and usable items

A sustainable manufacturing–remanufacturing inventory model with two production phases is presented in this study. In this two phases model, the first phase is used for manufacturing whereas the second phase is used for both manufacturing and remanufacturing. Keeping in mind about environment and price of products, it is presumed that market demand rate is influenced by the greenness of item and unit selling price simultaneously. Remanufacturing is performed for non-serviceable items i.e., defective items which are produced from imperfect production and used items that are purchased from the market. But the products for which remanufacturing cost is more than manufacturing cost are scraped off. In the production process carbon releases from setting up, manufacture and holding of the perfect items. To mitigate the carbon emission carbon tax regulation is imposed. Next, concavity of the profit function is driven through the pseudo concavity. Profit is maximized by minimizing the economic, environmental, and social effect. The models are illustrated by a numerical example and a sensitivity analysis is also elaborated for fixed parameters. Special cases are provided to compare the result with previous literature. The results shows that manufacturer wishes to engage in remanufacturing as remanufacturing cost continuously increases with respect time. Another important finding is that the manufacturer can choose remanufacturing as the cost is lower than manufacturing for saving environment. Finally, mathematical findings are listed and managerial implications are recorded.

A model for Optimal Pricing and Ordering Strategies for Perishable Goods with Delayed Deterioration, Two-Stage Demand, and Partial Backorders under Delayed Payment Acceptance

Study’s Excerpt/Novelty This study introduces a novel economic order quantity (EOQ) model for managing non-instantaneous deteriorating items under two-phase demand rates and linear holding costs, incorporating constant partial backlogging and two-level pricing strategies within a trade credit framework. The model uniquely addresses the complexities of time-dependent quadratic demand before deterioration and constant demand afterward, providing optimal solutions for maximizing total profit by determining the best timing for positive inventory, cycle length, and order quantity. The research not only establishes the theoretical existence and uniqueness of these optimal solutions but also demonstrates practical implications through numerical examples and sensitivity analyses, highlighting the critical impact of deterioration rates on inventory management and profitability. Full Abstract This research developed an economic order quantity model for non-instantaneous deteriorating items with two-phase demand rates, linear holding cost, constant partial backlogging rate and two-level pricing strategies under trade credit policy. It is assumed that the holding cost is linear time-dependent, the unit selling price before deterioration sets in is greater than that after deterioration sets and the demand rate before deterioration sets in is considered as continuous time-dependent quadratic, after which it is considered as constant up to when the inventory is completely exhausted. Shortages are allowed and partially backlogged. The purpose of the model is to determine the optimal time with positive inventory, cycle length and order quantity such that the total profit of the inventory system has a maximum value. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions have been established. Some numerical examples have been given to illustrate the theoretical result of the model. Sensitivity analysis of some model parameters on the decision variables has been carried out and suggestions towards maximising the total profit were also given. , it is seen that the higher the rate of deterioration the lower the optimal time with positive inventory ( ), cycle length order quantity and the total profit and vice versa. This implies that the retailer needs to take all the necessary measures to avoid or reduce deterioration to maximise higher profit. Based on the results application of the model led to an increase in revenue.

Design of Unified Modeling Language Information System for Motorcycle Unit Selling and Buying Transactions using the Waterfall Method

This research aims to design an information system for buying and selling motorbike units using the Waterfall method. The information system for buying and selling motorbike units has an important role in supporting motorbike sales business activities, from ordering to the payment process. The design of this system was carried out by following the Waterfall method approach which consists of several stages, namely requirements analysis, system design, implementation, testing and maintenance. The needs analysis stage involves identifying business and system user needs, including required functions and system requirements. Next, system design is carried out by designing the structure, interface and transaction process flow using the notation and methods provided by the Waterfall method. In implementation, an information system for buying and selling motorbike units is developed based on the design that has been created. Then, testing is carried out to verify the success of the system in carrying out its functions and ensure conformity with the specified needs. After that, the system is ready for use and maintenance is carried out to maintain the performance and reliability of the system on an ongoing basis. By applying the Waterfall method in designing a motor unit buying and selling transaction information system, it is hoped that it can produce a system that is structured, has functions that suit business needs, and is tested overall. The Waterfall method also allows developers to have a clear understanding of each design stage before moving on to the next, thereby minimizing the risk of errors and deficiencies in the system.

Demand Forecasting for Multi-Variety and Small-Batch Materials Based on Attention to Degree

Abstract Optimal production planning based on accurate market demand forecasting is crucial for cost control, inventory management, and market response in the multi-variety and small-batch production modes. Considering factors such as market demand, unit selling price, market demand trends, and product saturation within the attention cycle, an attention degree model for multi-variety and small-batch materials is constructed using historical market demand data from an electronic product manufacturing enterprise. A method for prioritizing and screening small-batch materials based on attention degree to formulate production plans is proposed. The demand for prioritized small-batch materials is predicted using the autoregressive integrated moving average model, multilayer perceptron, and bidirectional long short-term memory network. The optimal prediction results are selected to calculate the attention degree, which is then used to formulate the production plan for the next attention cycle to achieve orderly production. Taking the electronic product manufacturing enterprise as an example, the effectiveness and feasibility of the proposed model and method are verified by applying the prioritized production of small-batch materials screened based on attention degree.

Dynamic decisions in a closed-loop supply chain with two competitive third-party recyclers under altruistic preference

The closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and two competing third-party recyclers with altruistic preference is focused by us. We separately consider three altruistic preference models of differential game and Bellman theory that contrast and analyse dynamic decision-making such as the wholesale price of electric vehicle batteries (batteries) and the design innovation investment on the quality level decisions of the manufacturer, the unit selling price decision of the retailer, the recycling rate decisions of two third-party recyclers and the quality level of batteries. The numerical simulation further explores the rule of the time evolution of CLSC performance under four models. From our research, we conclude that: the altruistic preference has an optimistic impact in normal circumstances; if both the manufacturer and the retailer have altruistic preferences, the benefit of the value function of CLSC revealed only when the competition is at a lower level; the competition between two third-party recyclers is disadvantageous to the value function of CLSC, consumers and recycling activity.

Determination of optimal total area of heat recovery steam generator

Heat recovery steam generator (HRSG) plays a critical role in recovering waste heat from exhaust gas in a combined cycle. The performance of the steam cycle in the combined cycle depends on total HRSG area. This paper presents a comprehensive study on the determination of the optimal total area of single-pressure HRSG considering various factors such as exhaust gas temperature, main steam temperature, main steam pressure, reheat steam pressure, and reheat steam temperature. The research methodology involves the development of a mathematical model of HRSG that considers the key parameters affecting the HRSG performance. It is shown that, for given exhaust gas temperature and total HRSG area, there exists the set of steam parameters that yields the maximum net power output of the steam cycle. Furthermore, the power output increases monotonically with total HRSG area. However, the power output increases at a decreasing rate as total HRSG area increases. The optimal total HRSG area is shown to depend on the unit selling price of electricity, the unit cost of heat exchanger, the capacity factor of the power plant, and the acceptable payback period for the investment in the installation cost of HRSG.

Effects of variable prepayment installments on pricing and inventory decisions with power demand pattern and non-linear holding cost under carbon cap-and-price regulation

Regulators’ increasingly stringent carbon rules to protect the environment are encouraging practitioners to modify their operational activities that are accountable for releasing emissions into the atmosphere. Thereby, practitioners dealing with product inventory planning are seeking proper management strategies not only to increase profits but also to reduce released carbons from operations. In addition, increasing uncertainty in supply operations has motivated suppliers to impose prepayment mechanisms in recent decades. This study examines the best prepayment installment policy for a practitioner for the first time, where the consumption behavior of consumers changes as a result of the combined effects of unit selling price and storage time. Moreover, to make the present inventory planning more realistic, the unit holding cost function is adopted as a power function of the inventory unit's storage period. The goal of this study is to provide the best combined installment for advance payment, price, and replenishment strategies for a practitioner under cap-and-price, cap-and-trade, and carbon tax environmental guidelines by ensuring maximum profit. For this purpose, an algorithm is created by combining all derived theoretical results from the analytical study, whereas the efficacy of the algorithm is assessed through the examination of five illustrative numerical instances. A plethora of noteworthy management insights for the practitioner are obtained by investigating the dynamic shifts in optimal strategies resulting from fluctuations in system parameters. The results reveal that if the demand is low in the nascent phases of the business cycle, then the prudent approach for the practitioner entails procuring a comparatively smaller lot-size using a modest number of payment frequencies and then setting a relatively small unit selling price to increase profits.

An Order Quantity Model for Delayed Deteriorating Items with Time-varying Demand Rate and Holding Cost, Complete Backlogging Rate and Two-level Pricing Strategies under Trade Credit Policy

In some classical inventory models for non-instantaneous deteriorating items, it is tacitly assumed that the selling price before and after deterioration sets in is the same. However, in real practice, when deterioration sets in, the retailer may decide to reduce the selling price to encourage more sales, reduce the cost of holding stock, attract new customers and reduce losses due to deterioration. This research developed an economic order quantity model for non-instantaneous deteriorating items with two-phase demand rates, linear holding cost, complete backlogging rate and two-level pricing strategies under trade credit policy. It is assumed that the holding cost is linear time-dependent, the unit selling price before deterioration sets in is greater than that after deterioration sets and the demand rate before deterioration sets in is considered as continuous time-dependent quadratic, after which it is considered as constant up to when the inventory is completely exhausted. Shortages are allowed and completely backlogged. The proposed model determines the optimal time with positive inventory, cycle length and order quantity such that the total profit of the inventory system has a maximum value. The necessary and sufficient conditions for the existence and uniqueness of optimal solutions have been established. Numerical experiments have been conducted to illustrate the theoretical result of the model. Sensitivity analysis of some model parameters on the decision variables has been carried out, and suggestions towards maximising the total profit were also given.

A Learning-Based Optimal Decision Scenario for an Inventory Problem under a Price Discount Policy

This paper aims to design an inventory model for a retail enterprise with a profit maximization objective using the opportunity for a price discount facility given by a supplier. In the profit maximization objective, the demand should be increased. The demand can be boosted by lowering the selling price. However, lowering the selling price may not always give the best profit. Impreciseness plays a vital role during such decision-making. The decision-making and managerial activities may be imprecise due to some decision variables. For instance, the selling price may not be deterministic. A vague selling price will make the retail decision imprecise. To achieve this goal, the retailer must minimize impreciseness as much as possible. Learning through repetition may be a practical approach in this regard. This paper investigates the impact of fuzzy impreciseness and triangular dense fuzzy setting, which dilutes the impreciseness involved with managerial decisions. Based on the mentioned objectives, this article considers an inventory model with price-dependent demand and time and a purchasing cost-dependent holding cost in an uncertain phenomenon. This paper incorporates the all-units discount policy into the unit purchase cost according to the order quantity. In this paper, the sense of learning is accounted for using a dense fuzzy set by considering the unit selling price as a triangular dense fuzzy number to lessen the impreciseness in the model. Four fuzzy optimization methods are used to obtain the usual extreme profit when searching for the optimal purchasing cost and sale price. It is perceived from the numerical outcomes that a dense fuzzy environment contributes the best results compared to a crisp and general fuzzy environment. Managerial insights from this paper are that learning from repeated dealing activities contributes to enhancing profitability by diluting impreciseness about the selling price and demand rate and taking the best opportunity from the discount facility while purchasing.

Redevelopment Initiatives on Brownfield Sites: An Evaluation Model for the Definition of Sustainable Investments

With reference to brownfield sites redevelopment interventions, an innovative model for the definition of effective and financially sustainable initiatives is proposed and tested. The model borrows the operative logic of the break-even analysis (BEA). It neglects the basic assumption of BEA related to revenue linearity, by considering the real trend of the revenues. In fact, in specific contexts characterized by a real estate over supply—e.g., in small urban centers, or where a new plan includes a relevant increase in new buildings and/or the functional reconversion of existing disused complexes—the BEA hypothesis on revenue linearity could be inconsistent, as prices will tend to become depressed. In the mentioned situations, discount mechanisms on the unit prices could occur. These phenomena determine a reduction in the unit selling price in correspondence of the amount of gross floor area (GFA) increase. Taking into account the current and cogent needs of effective strategies for brownfields renovation, the innovative evaluation model is developed for supporting public and private investors’ decision processes. It could represent a valid reference in the preliminary phases of decision-making processes for public and private subjects, able to ensure the break-even point of the initiative balance sheet is reached.

Personal Protection Equipment Kit Tracker.

The primary efficient review on the status of individual defensive gear for medical services workers in India has uncovered that practically all parts of PPE were discovered to be either deficiently accessible or inaccessible in many clinics. PPEs are a significant clinical asset for cutting edge laborers during the pandemic that incorporate body coveralls, N-95 covers, goggles, face shields among others. The public authority has been guaranteeing that after the underlying long stretches of the pandemic, PPE were just imported and there is no deficiency since the most recent couple of months as several homegrown makers are delivering almost 4.5lakh PPE units every day now. Nonetheless, the most recent review by a gathering of free wellbeing analysts has affirmed that cutting edge workers are as yet not getting these units. The study depended on reactions from specialists, inhabitants and understudies, attendants and network wellbeing workers. Almost 33% of respondents revealed that covers were not accessible at all. (According to an article by The New Indian Express). There are claims that demonstrate no deficiencies of PPE units the nation over, yet as per ongoing overviews, the undeniable realities are not replicated. These realities get significantly more heart-breaking when we move from green zones (one out of five) to red zones (one out of three). At present, India does not have an appropriate framework for the board of the PPE packs, guaranteeing legitimate unit purchasing and selling or permitting taking an interest element to chip away at the regular stage to fix bargains with respect to PPE parts, as indicated by their prerequisites.

Effects of all-units discount on pricing and replenishment policies of an inventory model under power demand pattern

A profit optimisation inventory problem is studied for the products whose demand is interconnected with the per unit selling price and products’ consumption duration as a multiplicative form of the impacts of the selling price as a logit-function and time as a power function. A reduction opportunity of the unit purchase price is offered to the retailer against an order quantity-based prepayment schedule. This study identifies when an inventory procedure is profitable or non-profitable by examining all possibilities of the optimum order quantity under an order quantity-based advance and discount scheme. Combining all the derived theoretical results, an efficacious solution algorithm is established to determine the optimal solution to the problem. Several numerical problems of businesses are solved in order to clarify the algorithm and derive results as well. Finally, the effects of the all-units discount and prepayment system on the retailer's best pricing and replenishing strategies are explored by implementing sensitivity analyses.

Sustainable inventory management based on environmental policies for the perishable products under first or last in and first out policy

<p style='text-indent:20px;'>Holistic, quality, and sustainability-based inventory policy for perishable items may prove to be a game-changer amid great concern over the carbon footprint and global economic crises. In this paper, first-in-first-out (FIFO) and last-in-first-out (LIFO) dispatching policies have been used to examine the effect of quality on fresh products' sales mind the sustainability concern. The quality of these products worsens with age. Its deterioration rate follows two parameters, Weibull distribution, as it gives better flexibility for various items subjected to deterioration and demonstrates fitness for a range of shape and scale parameters. An adequate preservation effort such as controlled atmosphere (CA) storage and modified atmosphere packaging (MAP) techniques must be applied during storage and handling to maintain such products' quality. Consumers' purchasing behavior and curiosity towards quality and selling price drive these products' demand variability. The demand has been considered a function of quality and unit selling price of the item. The effect of inflation viz. time value of money has also been taken into account, affecting Authoritarian governments' norms on carbon emission control in taxation have also been considered essential for modern sustainable inventory policies. The present models determine the unit price and lot size for the maximum average profit of the system. The behaviors of models have been investigated using a comprehensive sensitivity analysis that offers important operative implications. It has been found that the first-in-first-out model is more profitable as compared to the last-in-first-out model, the price is very rigid, and little flexibility in price drastically decreases the profit. Backlogging has no impact on the selling price of products and order quantity but reduces the average yield because of carbon emission taxation.</p>

Optimal ordering and pricing decision for items following price sensitive quadratic demand under combined payment scheme

Three types of payments confront in business dealings viz. advance, cash and credit. A cash payment is ubiquitously practiced, while a credit payment scheme escalates sales and advance payment technique is implemented to avoid cancellation of orders. These are recognized as advance-cash-credit (ACC) payment scheme which is conventional in business transactions. By implicating ACC the aim is to determine optimal pricing and ordering policies. Inventory items observes quadratic demand being sensitive to unit selling price. Promising concavity of the profit function for both selling price and cycle time is posed numerically. Managerial insights are revealed as a concluding note.

Effectiveness of Consumer Promotions in Brick-and-Mortar Retail Stores

The purpose of this study is to identify the factors that aid in the measurement of the effectiveness of consumer promotions in brick-and-mortar retail. The already highly competitive landscape of retail is set to undergo a huge transformation post the COVID-19 outbreak, which will inadvertently lead to manufacturing cutting down costs wherever possible to maintain their margins and stay afloat. Advertising spends are bound to go down, and there is a need for a statistical model to measure the effectiveness of the capital spends by a firm towards consumer promotions. For the study, national level sales data of 4 subbrands of a particular toilet soap brand (shower soap bars) was analyzed for a leading retail chain in India from January 2018 to February 2020. Regression analysis was used to do the data analysis. The study focused on price-off consumer promotions only for the designated period for four variants of a popular Indian soap brand. The discount percentage (including both promotion spend by the manufacturer as well as a retailer), the quantity of the particular unit sold on which the promotion was run during the period when the promotion was run, the effective price to consumer per gram, and profitability for the manufacturer in terms of the net contribution percentage were the factors which were found to show a strong correlation and formed the input variables for the regression equation. The regression analysis showed that all the factors, namely: overall discount percentage, quantity sold, the effective price per gram, and the net contribution (profitability), were statistically significant in determining the uplift in sales quantity due to the discount (the effectiveness of the price promotion). The equation provides retailers and manufacturers a model to measure the effectiveness of promotion spending for price promotions that are run every month at a national and state level by giving state-level values as inputs. It also helps arrive at a baseline sales quantity for a particular SKU if no price-off promotion is run.

International Manufacturer’s Online Marketplace Choice Considering Behavior-Based Pricing

Considering the fact that the phenomenon of consumer behavior-based pricing (BBP) is becoming more prominent in global online sales, an international online channel decision-making model composed of an e-commerce firm and a manufacturer is established. The e-commerce firm is the leader, while the manufacturer is the follower. This study analyzes the decision-making problems in two cases. The first case happens when an international manufacturer establishes its own online-selling website. The second case uses the e-commerce firm’s online-selling platform. We make a horizontal and vertical comparison of equilibrium decision-making for these two participants, respectively. We examine how the manufacturer makes choices and how the e-commerce firm makes decisions about the referral fee rate and franchise fee under the BBP in the international environment. Whether the two players make different decisions between new customers and regular customers is verified. By constructing mathematical models under different channel structures and solving them, and finally, by comparing the equilibrium decisions under different structures and numerical analysis with the help of mathematical software, we have obtained some interesting conclusions. It is found that if the manufacturer establishes its own online-selling website, the e-commerce firm will provide new customers with lower prices than the price for regular customers. At this point, as direct competition forms between the e-commerce platform and the manufacturer, this allows the platform to offer lower prices to new customers in order to attract more new customers to shop on the platform. The manufacturer would differentiate new customers and regular customers according to the unit selling cost of its own website and consumers’ shopping costs. If the manufacturer uses the online-selling platform of the e-commerce firm, the manufacturer will provide a lower price to new customers; however, the e-commerce firm’s attitude to new and regular customers is affected by the referral fee rate. In addition, when the referral fee rate is reduced and the franchise fee is moderated, or the referral fee rate is moderate, and the franchise fee is reduced, the e-commerce firm will decide to attract manufacturers to sell products on its online platform. The manufacturer will give up establishing its own online-selling website and prefer to sell on the e-commerce firm’s online platform.

What type of contract should e-tailers offer sellers when facing internal competition.

This paper investigates whether an e-tailer should act as a platform and offer customers the product of a seller who can reach customers only through the e-tailer, and if so, what type of contract to offer the seller: a proportional commission based on revenue or a fixed fee per unit sold. The e-tailer also chooses the product line design: offer only her own product, offer only the outside seller’s product, or offer both her own product and the seller’s product. Intuitively, when the e-tailer’s product outperforms the seller’s product in terms of value-to-cost ratio, the e-tailer should not offer the seller’s product. However, non-intuitively, we also identify conditions in which the e-tailer remains better off not opening her platform to the seller even though the seller’s value-to-cost ratio is higher than the e-tailer’s and show how these conditions depends also on the consumers valuations. Regarding the type of contract to offer the seller, we find that most of the time, a proportional commission based on revenue is the best contract, guaranteeing the highest e-tailer profit. However, this is not always the case since there are situations when a fixed fee contract reduces the potential of internal competition.

Analisis Perbandingan Penentuan Harga Pokok Produksi Untuk Menentukan Harga Jual Produk Menggunakan Metode Full Costing Dan Variable Costing

Determination of the cost of production is a way to take into account the elements of cost into the cost of production. Cost of Production is a collection of production costs consisting of direct materials, direct labor and factory overhead costs plus inventories of products in the initial process and less inventories of products in the final process. And the selling price is an estimate of the exchange rate of the product for money. The selling price is the price obtained from the sum of the total production costs plus the mark-up used to cover factory overhead costs. The purpose of this study is to analyze the comparison of the determination of the cost of production to determine the selling price of the product using the Full Costing and Variable Costing method. Based on the calculation of the cost of production to determine the selling price of the product using the Full Costing method and the calculation of the cost of production using the variable costing method Determination of the selling price of the method of calculating the cost of goods manufactured Full Costing is higher than the variable costing methode and the calculation of the cost of production of the variable costing method The difference in the unit selling price of this product occurs because the calculation of the cost of production is also different.

A study of a lock fuzzy EPQ model with deterioration and stock and unit selling price-dependent demand using preservation technology

A study of a lock fuzzy EPQ model with deterioration and stock and unit selling price-dependent demand using preservation technology

A Pollution Sensitive Marxian Production Inventory Model with Deterioration Under Fuzzy System.

This article deals with an economic production quantity (EPQ) model with deterioration under the effect of environmental pollution in fuzzy environment. First of all, we develop a pollution generation (PG) model with the help of existing initial pollution status of the environment, and then we use it as an essential constraint in the proposed EPQ model. The model has also been studied in two different scenarios: (a) when unit selling price is given and (b) when unit selling price is associated with marginal profit respectively. However, in this article, the concept of manpower exploitation, law of surplus value and their impacts on profit function has been discussed. In fact, after the invention of Marxian production theory (1867), not a single article has been developed for studying inventory management problems/operations research using this theory. Thus, in this study, focussing Marxian principle we have developed a new production inventory model named Marxian economic production quantity (M-EPQ) model incorporating the extensions of the models developed by Harris (Mag Manag 10(2):135–136, 1913) and Taft (Iron Age 101:1410–1412, 1918) exclusively. Moreover, to deal with the non-random uncertainties of several cost components of production process we have utilized fuzzy system explicitly. A case study has been performed for numerical illustrations and we have developed a solution algorithm for numerical computations. Finally, sensitivity analysis and graphical illustrations are made to validate the new M-EPQ model followed by a conclusion.