Bhavin J. Shah

EOQ MODEL FOR TIME-DEPENDENT DETERIORATION RATE WITH A TEMPORARY PRICE DISCOUNT

Deterioration is defined as decay, damage, spoilage, evaporation, obsolescence, pilferage, and loss of utility or loss of marginal value of a commodity that reduces usefulness from original ones. Blood, fish, fruits and vegetables, alcohol, gasoline, radioactive chemicals, medicines, etc., lose their utility with respect to time. In this case, a discount price policy is implemented by the suppliers of these products to promote sales. In this study, a mathematical model is developed for an inventory system that considers a temporary price discount when commodities in an inventory system are subject to deterioration with respect to time. Our goal in this article is to maximize the difference between two costs (gain) — taking advantage of price discount by ordering a large quantity, which in turn increases inventory holding cost as well deterioration cost and by not ordering a large quantity at a discounted price. An attempt is made to find bounds on the beneficial discount rate. The model is supported with a numerical example.

A lot size inventory model for the Weibull distributed deterioration rate with discounted selling price and stock-dependent demand

In this paper, we present an inventory model with stock-dependent demand and deteriorating inventory. It is assumed that the deterioration rate follows a three-parameter Weibull distribution. The strategy of offering discounts in the selling price to boost demand is studied. The optimal discount in the selling price to maximise profit and the effects of deterioration on the optimal solution are the foci of this study. A numerical example and sensitivity analysis are carried out to validate the theory.

Optimal coordinated supply chain strategy with price and time sensitive demand

In this study, inventory models are developed for coordinated supply chain using Stackelberg game framework. In the proposed model, customer demand is assumed to be price and time sensitive. The buyer attempts to adjust retail selling prices by charging premium or offering discount to the floor selling price depending upon the optimistic or declining market conditions. The aim of this research paper is to analyse the optimal pricing policy that maximises total profit for both the players under the principles of coordination, and competition. Some numerical examples are given to study the model. The results show that the vendor gets more advantage when the collaborative model is applied and the buyers profit is bigger in the Stackelberg game model than the collaborative model.

An EOQ model tor deteriorating items with progressive payment scheme under DCF approach

In this paper, an EOQ model is developed in which items in inventory deteriorate at a constant rate and supplier offers the progressive trade credit to the retailer. A progressive trade credit is defined as follows: If the retailer pays the outstanding amount by M, the supplier does not charge any interest. If the retailer pays after M but before N (N >M), the retailer will have to pay interest charges at the rate Ic1. If the account is settled after N, the retailer will be charged at the rate Ic2 (Ic2 > Ic1). The model is developed under the Discounted-cash-flow (DCF) approach. The present value of all future cash-out-flows is derived for all the three possible scenarios. At the end, a numerical example is given to illustrate the results obtained and sensitivity analysis of various parameters on the optimal solutions is carried out.