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An EOQ model for perishable product with special sale and shortage

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  • Taleizadeh, Ata Allah
  • Mohammadi, Babak
  • Cárdenas-Barrón, Leopoldo Eduardo
  • Samimi, Hadi

Abstract

In this paper, for the first time, an inventory control model to determine the optimal order and shortage quantities of a perishable item when the supplier offers a special sale is developed. Four possible cases based on decision that the purchaser might make about the first replenishment policy (using regular economic order quantity model at reduced price or regular price), if he did not take the special order, and coincidence of special period length with positive or negative inventory level of the last regular period length during the special period, are investigated. Moreover several useful theorems are suggested through which one can find closed-form solution directly when there are integer operators involved in an objective function. At the end, in order to illustrate the proposed theorems and the solution method some numerical examples are solved and a sensitivity analysis is reported too.

Suggested Citation

  • Taleizadeh, Ata Allah & Mohammadi, Babak & Cárdenas-Barrón, Leopoldo Eduardo & Samimi, Hadi, 2013. "An EOQ model for perishable product with special sale and shortage," International Journal of Production Economics, Elsevier, vol. 145(1), pages 318-338.
  • Handle: RePEc:eee:proeco:v:145:y:2013:i:1:p:318-338
    DOI: 10.1016/j.ijpe.2013.05.001
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    References listed on IDEAS

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    Cited by:

    1. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
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    3. Miao, Jie & Liu, Aijun & Wang, Ruiyao & Lu, Hui, 2022. "The influence of information asymmetry on the strategic inventory of deteriorating commodity," Omega, Elsevier, vol. 107(C).
    4. Taleizadeh, Ata Allah & Noori-daryan, Mahsa & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items," International Journal of Production Economics, Elsevier, vol. 159(C), pages 285-295.
    5. Shima Shafiee-Gol & Mohammad Mahdi Nasiri & Ata Allah Taleizadeh, 2016. "Pricing and production decisions in multi-product single machine manufacturing system with discrete delivery and rework," OPSEARCH, Springer;Operational Research Society of India, vol. 53(4), pages 873-888, December.
    6. Nima Kazemi & Salwa Hanim Abdul-Rashid & Ehsan Shekarian & Eleonora Bottani & Roberto Montanari, 2016. "A fuzzy lot-sizing problem with two-stage composite human learning," International Journal of Production Research, Taylor & Francis Journals, vol. 54(16), pages 5010-5025, August.
    7. Avinadav, Tal & Herbon, Avi & Spiegel, Uriel, 2014. "Optimal ordering and pricing policy for demand functions that are separable into price and inventory age," International Journal of Production Economics, Elsevier, vol. 155(C), pages 406-417.
    8. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh, 2019. "A consignment stock scheme for closed loop supply chain with imperfect manufacturing processes, lost sales, and quality dependent return: Multi Levels Structure," International Journal of Production Economics, Elsevier, vol. 217(C), pages 298-316.
    9. Shaposhnik, Yaron & Herer, Yale T. & Naseraldin, Hussein, 2015. "Optimal ordering for a probabilistic one-time discount," European Journal of Operational Research, Elsevier, vol. 244(3), pages 803-814.
    10. Yusen Xia, 2016. "Responding to supplier temporary price discounts in a supply chain through ordering and pricing decisions," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 1938-1950, April.
    11. K. F. Mary Latha & R. Uthayakumar, 2017. "A two-echelon supply chain coordination with quantity discount incentive for fixed lifetime product in a fuzzy environment," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1194-1208, November.
    12. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    13. A. Thangam, 2017. "Retailer’s optimal replenishment policy in a two-echelon supply chain under two-part delay in payments and disruption in delivery," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 26-46, January.
    14. Taleizadeh, Ata Allah & Zarei, Hamid Reza & Sarker, Bhaba R., 2017. "An optimal control of inventory under probablistic replenishment intervals and known price increase," European Journal of Operational Research, Elsevier, vol. 257(3), pages 777-791.
    15. Shayan Tavakoli & Ata Allah Taleizadeh, 2017. "An EOQ model for decaying item with full advanced payment and conditional discount," Annals of Operations Research, Springer, vol. 259(1), pages 415-436, December.
    16. Nughthoh Arfawi Kurdhi & Joko Prasetyo & Sri Sulistijowati Handajani, 2016. "An inventory model involving back-order price discount when the amount received is uncertain," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(3), pages 662-671, February.
    17. Yang, Chih-Te, 2014. "An inventory model with both stock-dependent demand rate and stock-dependent holding cost rate," International Journal of Production Economics, Elsevier, vol. 155(C), pages 214-221.
    18. Lee, Sunghee & Kim, Daeki, 2014. "An optimal policy for a single-vendor single-buyer integrated production–distribution model with both deteriorating and defective items," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 161-170.
    19. Al-Amin Khan, Md. & Shaikh, Ali Akbar & Konstantaras, Ioannis & Bhunia, Asoke Kumar & Cárdenas-Barrón, Leopoldo Eduardo, 2020. "Inventory models for perishable items with advanced payment, linearly time-dependent holding cost and demand dependent on advertisement and selling price," International Journal of Production Economics, Elsevier, vol. 230(C).
    20. Taleizadeh, Ata Allah, 2014. "An EOQ model with partial backordering and advance payments for an evaporating item," International Journal of Production Economics, Elsevier, vol. 155(C), pages 185-193.
    21. Zheng, Qi & Zhou, Li & Fan, Tijun & Ieromonachou, Petros, 2019. "Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 16-36.

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