An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns

Date

2015-03-01

Author

Ghoreishi, Maryam
Weber, Gerhard Wilhelm
Mirzazadeh, Abolfazl

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

62
views

0
downloads

This paper develops an economic ordering policy model for non-instantaneous deteriorating items with selling price- and inflation-induced demand under the effect of inflation, permissible delay in payments and customer returns. Shortages are allowed and partially backlogged. The customer returns are assumed to increase with both the quantity sold and the product price. The main objective is to determine the optimal selling price, the optimal length of time in which there is no inventory shortage, and the optimal replenishment cycle simultaneously, to minimize the present value of the total profit. An efficient algorithm is presented to find the optimal solution of the developed model. Finally, a numerical example is extracted to solve the presented inventory model using the proposed algorithm.

Subject Keywords

Optimal pricing and inventory, Permissible delay in payments, Non-instantaneous deteriorating items, Customer returns, Inflation

URI

https://hdl.handle.net/11511/51659

Journal

ANNALS OF OPERATIONS RESEARCH

DOI

https://doi.org/10.1007/s10479-014-1739-7

Collections

Graduate School of Applied Mathematics, Article

Suggestions

OpenMETU
Core

JOINT PRICING AND REPLENISHMENT DECISIONS FOR NON-INSTANTANEOUS DETERIORATING ITEMS WITH PARTIAL BACKLOGGING, INFLATION- AND SELLING PRICE-DEPENDENT DEMAND AND CUSTOMER RETURNS Ghoreishi, Maryam; Mirzazadeh, Abolfazl; Weber, Gerhard Wilhelm; Nakhai-Kamalabadi, Isa (American Institute of Mathematical Sciences (AIMS), 2015-07-01) This paper develops an Economic Order Quantity (EOQ) model for non-instantaneous deteriorating items with selling price- and inflation-induced demand under the effect of inflation and customer returns. The customer returns are assumed as a function of demand and price. Shortages are allowed and partially backlogged. The effects of time value of money are studied using the Discounted Cash Flow approach. The main objective is to determine the optimal selling price, the optimal length of time in which there is...
Optimal pricing and ordering policy for non-instantaneous deteriorating items under inflation and customer returns Ghoreishi, M.; Mirzazadeh, A.; Weber, Gerhard Wilhelm (Informa UK Limited, 2014-01-01) This paper deals with an economic production quantity inventory model for non-instantaneous deteriorating items under inflationary conditions considering customer returns. We adopt a price-and time-dependent demand function. Also, the customer returns are considered as a function of both price and demand. The effects of time value of money are studied using the Discounted Cash Flow approach. The main objective is to determine the optimal selling price, the optimal replenishment cycles, and the optimal produ...
A simple growth model of schooling and public expenditure on education Alvarez-Albero, Carmen D. (ODTÜ GELİŞME DERGİSİ, 2000-1-01) This paper examines the long run effects of public expenditure on education on time allocation and the growth rate in a two-sector model of endogenous growth with physical and human capital. Individuals accumulate human capital by devoting time to school and public expenditure on education is an input in the human capital technology. The model shows that when the government modifies the proportion of resources assigned to education, the time spent in school may increase, fall or remain constant while the gr...
A quantitative analysis of cost-push shocks and optimal inflation volatility Senay, Ozge; Sutherland, Alan (Informa UK Limited, 2008-01-01) This article presents a quantitative analysis of optimal inflation volatility in a simple sticky-price general equilibrium model subject to both supply and cost-push shocks. It is found that optimal policy implies a relatively small degree of inflation volatility even when cost-push shocks are the dominant source of economic disturbance. In addition, it is found that optimal policy generates only a very small welfare gain when compared to strict inflation targeting.
The Assessment of macroeconomic variability and monetary transmission mechanisms in Turkey with VAR esrimates Baştan, Emine Meltem; Gaygısız Lajunen, Esma; Department of Economics (2012) This thesis investigates the nature of macroeconomic changes by focussing on the monetary policy changes in Turkey between 1990Q1-2011Q4 and assesses the variability of the economy via impulse response functions obtained from VAR analyses. The period of the analyses is characterized with changes of the definitions of monetary aggregates in 2002 and 2007. In order to have consistent monetary series, the new and old series are constructed according to new and old definitions and then analyses are carried out ...

Citation Formats

M. Ghoreishi, G. W. Weber, and A. Mirzazadeh, “An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns,” ANNALS OF OPERATIONS RESEARCH, pp. 221–238, 2015, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/51659.