Quantity discount for integrated supply chain model with back order and controllable deterioration rate

Due to uncertainty in economy, business players examine different ways to ensure the survival and growth in the competitive atmosphere. In this scenario, the use of effective promotional tool and co-ordination among players enhance supply chain profit. The proposed model deals with the effect of qua...

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Bibliographic Details
Published inYugoslav Journal of Operations Research Vol. 28; no. 3; pp. 355 - 369
Main Authors Mishra, Poonam, Talati, Isha
Format Journal Article
LanguageEnglish
Published University of Belgrade 01.01.2018
Subjects
advertise and stock dependent demand
back order
constant deterioration
integrated inventory
preservative technology
quantity discount
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Summary:Due to uncertainty in economy, business players examine different ways to ensure the survival and growth in the competitive atmosphere. In this scenario, the use of effective promotional tool and co-ordination among players enhance supply chain profit. The proposed model deals with the effect of quantity discount on an integrated inventory system for constantly deteriorating items with fix life time. We use advertisement and quantity discount to accelerate stock dependent demand and further, the offered preservation technology for controlling deterioration rate. The model is validated numerically, and the sensitivity analysis for critical supply chain parameters is carried out. The results can be used in the decision making process of the supply chains associated with the supply of cosmetic, tinned food, drugs, and other FMCGs. nema
ISSN:0354-0243
1820-743X
DOI:10.2298/YJOR171014012M