An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment
This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the...
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| Published in | R.A.I.R.O. Recherche opérationnelle Vol. 53; no. 1; pp. 39 - 57 |
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| Main Authors | , , , |
| Format | Journal Article |
| Language | English |
| Published |
Paris
EDP Sciences
01.01.2019
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| Subjects | |
| Online Access | Get full text |
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| Abstract | This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer’s demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the “in-control” to “out-of-control” states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model. |
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| AbstractList | This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer’s demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the “in-control” to “out-of-control” states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model. This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer’s demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the “in-control” to “out-of-control” states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model. |
| Author | Dey, Bikash Koli Sarkar, Mitali Sarkar, Biswajit Pareek, Sarla |
| Author_xml | – sequence: 1 givenname: Bikash Koli surname: Dey fullname: Dey, Bikash Koli organization: Department of Mathematics & Statistics, Banasthali Vidyapith, Banasthali, Rajasthan 304022, India – sequence: 2 givenname: Biswajit surname: Sarkar fullname: Sarkar, Biswajit email: bsbiswajitsarkar@gmail.com organization: Production Engineering & Operations Management Laboratory, Department of Industrial & Management Engineering, Hanyang University, Ansan Gyeonggi-do 15588, South Korea – sequence: 3 givenname: Mitali surname: Sarkar fullname: Sarkar, Mitali organization: Production Engineering & Operations Management Laboratory, Department of Industrial & Management Engineering, Hanyang University, Ansan Gyeonggi-do 15588, South Korea – sequence: 4 givenname: Sarla surname: Pareek fullname: Pareek, Sarla organization: Department of Mathematics & Statistics, Banasthali Vidyapith, Banasthali, Rajasthan 304022, India |
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| SubjectTerms | 90B05 90B06 Algorithms Cost reduction Demand Discrete setup cost reduction Inventory Inventory management Lead time Mathematical models Poisson distributed leadtime Poisson distribution Production planning Safety factors selling-price-dependent demand Sensitivity analysis Shipments shortage Stability Statistical analysis variable safety factor |
| Title | An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment |
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