1,720,995 research outputs found
An EOQ model with partial backordering with regard to random yield: two strategies to improve mean and variance of the yield
No full textThis paper presents an economic order quantity (EOQ) inventory model with partial backordering, where a buyer purchases its required products from a supplier. Each received batch from the supplier includes a random proportion of defective items. In other words, supplier's production process works to a random yield. A recursive solution method to find the optimal values for main decision variables is examined through a series of numerical examples. Moreover, it is considered that the yield can be improved at a given cost. To this extent, two ways to achieve the yield improvement have been considered: the first way is investment in order to improve the mean of the yield to an ideal value, and the second way is investment to reduce the yield variability to an acceptable value. The impacts of the proposed strategies are investigated through some numerical analysis and managerial insights are proposed
A sustainable inventory system with price-sensitive demand and carbon emissions under partial trade credit and partial backordering
Full text linkCompanies and governments are actively looking for methods of curbing global warming. Management of inventory systems while considering environmental issues is an important problem. Therefore, this paper explores an Economic Order Quantity model by incorporating environmental issues under partial trade credit and partial backordering. The selling price and carbon emission-dependent demand function is adopted in this paper. The paper first formulates an inventory model with an exogenous price under cap-and-trade and carbon tax mechanisms. The study then extends the proposed problem when the selling price is an endogenous variable. These models are formulated as a nonlinear programming problem of profit maximization, and they are optimized applying global optimization of signomial geometric programming. Further, numerical examples and sensitivity analysis are presented to examine the effects of different shortage rates, credit periods, carbon tax, and price on the retailer’s replenishment strategies.No Full Tex
Optimizing vendor-managed inventory systems with limited storage capacity and partial backordering under stochastic demand
No full textDeveloping economic order quantity model for non-instantaneous deteriorating items in vendor-managed inventory (VMI) system
No full textInternational audienceThis paper develops an economic order quantity model for non-instantaneous deteriorating items with and without shortages to investigate the performance of the vendor-managed inventory (VMI) system. This model is developed for a two-level supply chain consisting of a single supplier and single retailer with a single non-instantaneous deteriorating item. A numerical example and sensitivity analysis are provided to illustrate how increasing or reducing the related parameters changes the optimal values of the decision variables of the two proposed models. The results show that VMI works better and charges lower costs in all conditions
National brands versus store brands: retailer fight against national brands to improve store brands via a dynamic discount pricing strategy
No full textToday, there is a lot of competition between competitors in the market of different products. The level of complexity of relationships and behavior of active players in the market has also increased. So that a manufacturer and retailer work together to increase the profit of the supply chain through the sale of products. On the other hand, the retailer and the manufacturer as competitors are competing with each other to sell more of their products. This issue has increased the complexity of the relationship between retailers and manufacturers. This study aims to explore how retailers can strengthen the self-introduced store brand (SB) and resist the pressures of manufacturers by using dynamic discount pricing (DDP) strategy. Numerical examples are proposed to clearly explain the validity and applicability of the model. Based on the managerial insights developed by analyzing the model's results, we evaluated the influences of DDP strategy on the retail prices and demands of national brands (NB) and SB and the profit of the retailer and the manufacturer. We found that discounts on the manufacturer's product by the retailer increase the demand for both NB and SBs. An increase in demand leads to an increase in the profits of manufacturers and retailers. However, the increase in the manufacturer's profit does not compensate for the decrease in his market share. In other words, the introduction of an SB always causes damage to the manufacturer, but the amount of damage depends on various factors. These findings offer manufacturers and retailers useful insights and help them adopt effective marketing strategies
Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering
Full text linkThe situation where serviceable products are sold together with a proportion of deteriorating products to consumers is rarely discussed in the literature. This article proposes an inventory model with disparate inventory ordering policies under a situation where a portion of serviceable products and a portion of deteriorating products are sold together to consumers (i.e. mixed sales). The ordering policies consider a hybrid payment strategy with multiple prepayment and partial trade credit schemes linked to order quantity under situations where no inventory shortage is allowed and inventory shortage is allowed with full backorder. The hybrid payment policy offered by a supplier is introduced into the classical economic ordering quantity model to investigate the optimal inventory cycle and the fraction of demand that is filled from the deteriorating products under inspection policy. Further, a new solution method is proposed that identifies optimal annual total profit with mixed sales assuming no inventory shortage and inventory shortage with full backorder. The impact of an inspection policy is investigated on the optimality of the solution under hybrid payment strategies for the deteriorating products. The validation of the proposed model and its solution method is demonstrated through several numerical examples. The results indicate that the inventory model along with the solution method provide a powerful tool to the retail managers under real-world situations. Results demonstrate that it is essential for the managers to consider inclusion of an inspection policy in the mixed sales of products, as the inspection policy significantly increases the net annual profit
Price optimization in supply chain agreements: a comparative analysis of buyback and put option contracts for inventory risk management
Full text linkThis paper aims to provide a model of a supply chain in the integrated system and obtain its optimal decision variables. The paper introduces buyback and put option contracts to reduce inventory risk. These contracts were compared in three different cases via a numerical analysis approach. In the first case, the holding cost (h) of a retailer for surplus orders in the buyback contract is equal to the option price (o) in the put option model. The relationship between exercise price (e) in the put option model and buyback price (b) in the buyback contract was obtained by comparing the optimal values in the models. This study found that the exercise price in the put option contract will be greater than the buyback price. Furthermore, it is more likely that the retailer gave more benefits under the buyback agreement than the time the retailer chooses the put option contract. Therefore, it can be concluded that if the retailer chooses the buyback agreement in this situation, can gain more benefits. The study provides essential managerial insights to compare agreements and presents recommendations to choose a suitable contract
Optimizing online selling through an online-to-offline platform: strategic ramifications for local n stores
No full textThe goal of this research is to determine whether a local brick-and-mortar (B&M) business should implement an online-to-offline (O2O) strategy, as well as the conditions under which each mode is most effective. This research examines how an O2O platform and a B&M store's (like restaurants) decision-making processes interact in a two-echelon supply chain (SC). This research employs numerical experiments and a mathematical approach to address research issues with an online food ordering service Snappfood that delivers from over 1,500 eateries. We first look at five case studies in which the retail price of Snappfood is determined in both a normal situation (without a marketing mechanism) and one in which the store invests in local advertising to boost demand in the self-building channel. A growth in SC profits is predicted by numerical experiments conducted under this model. The findings of decentralized decision-making reveal that in self-building mode, the store decides on both retail channels and the level of local advertising investment. In turn, the O2O platform recommended a payment delay contract as a fixed operating method for working with B&M stores. This is one of the first studies to investigate at the online sales of a local B&M store, which has the unique characteristic of offering home delivery. Second, we suggest and evaluate that a B&M store can use either the self-building technique or implementing an O2O platform for online selling. © 2023, The Author(s), under exclusive licence to Springer Nature Limited
Price optimization for manufacturers in a competitive retail market: imported products and online crowdfunding option
Full text linkThis study explores how manufacturers in the competitive supply chain can set prices and secure funding effectively. We use game theory to look at how competition between domestic and foreign manufacturers affects pricing decisions. Our research investigates how a domestic manufacturer can improve its market share by addressing financial challenges through modern financing methods. In this scenario, a domestic manufacturer competes with a foreign one to attract a retailer’s market share and profits. The retailer decides what products to buy and how to price them based on bid prices and demand. We also consider that the domestic manufacturer will use online crowdfunding platforms to tackle its financial problem. Hence, our study sets up a supply chain where competition revolves around both operational and financial decisions. Mathematical models are developed to analyze how costs, finances, market potential, and price sensitivity impact various parts of the supply chain. The results reveal that decisions made on the crowdfunding platform significantly influence other supply chain decisions. Manufacturers and retailers need to pay attention to the financial decisions made on this platform to maximize profits. Also, domestic and foreign manufacturers should consider customer preferences for their products when setting prices. Finally, the results demonstrate that a domestic manufacturer can gain a competitive edge in the retail market by carefully considering both product pricing and financial decisions, including those made on the lending platform. © 2024, The Author(s)
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