Mandeep Mittal

Credit financing in economic ordering policies for defective items with allowable shortages

In the classical inventory models, the common unrealistic assumption is that all the items produced are of good quality in nature. However, in realistic environment, it can be observed that there may be some defective items in an ordered lot. These items are usually picked up during the screening process and are sold as a single lot at the end of screening process. Further, it is tacitly assumed that the supplier must be paid for the items as soon as the items are received. Whereas, in today business transaction, it is common to see that the retailer is allowed some grace period before they settle the account with the supplier. Under this scenario, a new inventory model for imperfect quality items has been developed under permissible delay in payments. Shortages are allowed and fully backlogged, which are eliminated during screening process as it has been assumed that screening rate is greater than the demand rate. This model jointly optimizes the order quantity and shortages by maximizing the expected total profit. Results have been validated with the help of numerical example using Matlab 7.0.1. Comprehensive sensitivity analysis has also been presented.

Controllable lead time, service level constraint, and transportation discounts in a continuous review inventory model

This paper studies two models based on the distribution of lead time demand. The first model assumes a normally distributed lead time demand and the second assumes that there is no specific distribution for lead time demand, but it is with known mean and standard deviation. The continuous-review inventory model is used for both cases. Transportation cost is dependent on the ordered quantity i . e ., how much quantity buyer orders for delivery, based on that, a transportation discount is used to reduce the total cost. Service level constraint is included in this model to avoid backorder cost. Two efficient lemmas are established to obtain the optimum solution of the model. The expected value of additional information (EVAI) is calculated to show the excess amount needed for the distribution free case. Some numerical examples and sensitivity analysis are given to illustrate the model.

Effects of inspection on retailer's ordering policy for deteriorating items with time-dependent demand under inflationary conditions

In this article, an Economic Order Quantity (EOQ) model has been developed with unreliable supply, where each received lot may have random fraction of defective items with known distribution. Thus, the inspection of lot becomes essential in almost all the situations. Moreover, its role becomes more significant when the items are deteriorating in nature. It is assumed that defective items are salvaged as a single batch after the screening process. Further, it has been observed that the demand as well as price for certain consumer items increases linearly with time, especially under inflationary conditions. Owing to this fact, this article investigates the impact of defective items on retailers ordering policy for deteriorating items under inflation when both demand and price vary with the passage of time. The proposed model optimises the order quantity by maximising the retailers expected profit. Results are demonstrated with the help of a numerical example and the sensitivity analysis is also presented to provide managerial insights into practice.

Pricing and Replenishment Policies for Imperfect Quality Deteriorating Items Under Inflation and Permissible Delay in Payments

Usually it is assumed that all items in a lot are of good quality, but in reality this assumption may not always be pertinent. Thus, the inspection of lots becomes essential in almost all organizations. Moreover, its role becomes more vital when the items are deteriorating in nature. Owing to this fact, this paper investigates the impact of initial inspection on retailer’s pricing and ordering policy for deteriorating items under inflation and permissible delay in payments using discounted cash flow approach over a finite planning horizon. Demand rate is assumed to be a function of selling price. The proposed model jointly optimizes the number of replenishments and price by maximizing the retailer’s total profit. Results have been demonstrated with the help of a numerical example, and sensitivity analyses are also presented to provide managerial insights into practice.

Loss Profit Estimation Using Temporal Association Rule Mining

Temporal association rule mining is a data mining technique in which relationships between items which satisfy certain timing constraints can be discovered. This paper presents the concept of temporal association rules in order to solve the problem of classification of inventories by including time expressions into association rules. Firstly, loss profit of frequent items is calculated by using temporal association rule mining algorithm. Then, the frequent items in particular time-periods are ranked according to descending order of loss profits. The manager can easily recognize most profitable items with the help of ranking found in the paper. An example is illustrated to validate the results. KEywoRdS ABC Classification, Data Mining, Inventory Management, Loss Profit, Temporal Association Rule Mining

Credit financing for deteriorating imperfect-quality items under inflationary conditions

In today’s technology-driven world, despite of efficient planning of manufacturing system and emergence of sophisticated production methods and control systems; the items produced have some fraction of defectives. However, these defective items can be removed from the lot through a screening process. Thus, the inspection of lot becomes essential, especially when items are deteriorating in nature. Further, in today’s uncertain global economy, due to rising inflation there is a consequent decline in the real value of money, which eventually forces the supplier to provide an attractive tradecredit policy to the retailer. Keeping this scenario in mind, an attempt has been made to formulate an inventory policy for a retailer dealing with imperfect quality items of deteriorating nature under inflation and permissible delay in payments. Results have been demonstrated with the help of a numerical example and sensitivity analysis is also presented to provide managerial insights into practice.

Retailer's ordering policy for deteriorating imperfect quality items when demand and price are time-dependent under inflationary conditions and permissible delay in payments

The present paper investigates an inventory model with unreliable supply, where each received lot may have a random fraction of defective items with known distribution. Thus, the inspection of lot becomes essential in almost all the situations, especially when the items are of deteriorating in nature. Moreover, in todays competition inherited business world, organisations use many promotional tools in order to increase their sales. One such tool is a permissible delay in payments, i.e., the buyer does not have to pay for the goods purchased immediately rather can defer the payment for a prescribed period given by the supplier. Further, in todays wobbling economy, especially for long-term investment, the effects of inflation cannot be disregarded as uncertainty about future inflation may influence the ordering policy. Being motivated by these aspects, the present paper investigates the impact of inspection on retailers ordering policy for deteriorating items under permissible delay in payments when demand and price both varies with the passage of time. Finally, the model has been analysed and validated with the help of numerical examples. A comprehensive sensitivity analysis is also presented which provides important managerial implications.

Cooperative/Non-cooperative Supply Chain Models for Imperfect Quality Items with Trade Credit Financing

This paper studies the cooperative and non-cooperative models between the two partners of the supply chain system, seller and buyer. In this paper, supply chain models are formulated for imperfect quality items in which end demand of the product depends upon the retail price. The fixed credit period is offered by the seller to the buyer to stimulate his sales. The inspection process is also applied to each supplied lot at buyer’s end, and all the inspected items are separated into perfect quality items and imperfect quality items. Once the inspection process completed, perfect quality items are sold at selling price and imperfect quality items are sold at rebated/discounted price. The selling price and credit period proposed by the seller are considered as decision variables. The lot size and retailer price are decision variables of the buyer. In the proposed model, optimal policies of the seller’s and buyer’s are obtained under cooperative and non-cooperative analogue which will enhance the supply chain profit. Cooperative relationship is derived by a Pareto-efficient solution method, and non-cooperative is obtained by Seller-Stackelberg approach. Finally, numerical illustrations with sensibility analysis are stated to exemplify the theory of the paper.

Effects of imperfect quality items in the asymmetric information structure in supply chain model

Article history: Received March 2, 2017 Received in revised format October 10, 2017 Accepted November 3 2017 Available online November 3 2017 Most of the supply chain models have been developed under symmetric information structure i.e. players have complete knowledge of each other’s policies. But in most of the cases, players do not have complete information about the other players i.e. some information regarding their businesses is hidden. This paper studies supply chain model of imperfect quality items under asymmetric information in which unit price taken by the buyer and unit marketing expenditure are influencing product’s demand. This information is hidden to seller. The seller delivers the supply to the buyer. Each delivered lot goes through an inspection process at the buyer’s side. In the inspection process, the items are divided into two categories. The first category is perfect quality items while the second category is of imperfect quality items. After the inspecting the lots, the perfect quality commodities are to be sold at selling price and the imperfect items are supposed to get sold at a discounted price. The interaction between two constituents of the supply chain is modeled by non-cooperative Seller Stackelberg game approach in which the role of leader is played by the seller while the role of follower is played by the buyer. In our proposed model, the seller does not have information related to market demand but the buyer does. Numerical examples and sensitivity analysis explain the significance of the theory. Growing Science Ltd. All rights reserved. 8

Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure

This paper studies supply chain model for imperfect quality items under which unit price and unit marketing expenditure imposed by the buyer, regulates the demand of the item. It is presumed that with the accustomed supply chain model, all produced items are of good quality, coincidentally, it engrosses some percentage of defective items. Thus, inspection process becomes essential for the buyer to segregate the defective items, which are then sold at discounted price at the end of the screening process. In this paper, a supply chain model is ensued to substantiate the interaction and democracy of the participants in the supply chain, the buyer and seller, is pitched by non-cooperative and cooperative game theoretical approaches. In the non-cooperative method, the Stackelberg game approach is used in which one player behaves as a leader and another one as a follower. The co-operative game approach is based on a Pareto efficient solution concept, in which both the players work together to enhance their profit. Lastly, to demonstrate the significance of the theory of the paper, numerical examples including sensitivity analysis are presented.