IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v14y2021i9p398-d621213.html
   My bibliography  Save this article

A Discount Technique-Based Inventory Management on Electronics Products Supply Chain

Author

Listed:
  • Md. Sujan Miah

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Md. Mominul Islam

    (Department of Physics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Mahmudul Hasan

    (Department of Mathematics, Jahangirnagar University, Saver, Dhaka 1342, Bangladesh)

  • Abu Hashan Md. Mashud

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Dipa Roy

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Shib Sankar Sana

    (Kishore Bharati Bhagini Nivedita College, Ramkrishna Sarani, Behala, Kolkata 700060, India)

Abstract

Inventory management is becoming very challenging for the retailer over the years due to the uncertainty in the demand and supply of products in financial risk and management systems. In a competitive market, running a business smoothly in a highly suitable place is day by day becoming tough due to the very high fare for those locations. Thus, limited storage is available in those elite places with high fares, and a retailer takes a financial risk by stocking huge amounts of products in those limited storage stores. Thus, the appropriate financial analysis is required to find out optimal strategies (financial decisions) to sustain a business organization of electronic products in a global competitive business environment. As a result, when bulk purchases of electronic products, for example, T.V., Fridges, Oven, etc., have been made by the retailer, he faces two problems. The first one is related to the limited storage; as a result, he has to pay a considerable amount to hold the products for a long time. The second one is shortages of liquid money as he invested massive amounts. To avoid these problems, he offers some price discounts on the market’s original selling price to sell the products quickly for a limited time prior to recovering his capital investment. For that reason, a price, time, and stock dependent realistic demand function have been considered in this proposed paper with two modes of discount policy. The proposed model has been solved by a classical optimization technique from calculus and provides some insights for the retailer. Some numerical examples and graphs are provided to illustrate the model.

Suggested Citation

  • Md. Sujan Miah & Md. Mominul Islam & Mahmudul Hasan & Abu Hashan Md. Mashud & Dipa Roy & Shib Sankar Sana, 2021. "A Discount Technique-Based Inventory Management on Electronics Products Supply Chain," JRFM, MDPI, vol. 14(9), pages 1-16, August.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:9:p:398-:d:621213
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/14/9/398/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/14/9/398/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Cambini & Laura Martein, 2009. "Generalized Convexity and Optimization," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-70876-6, December.
    2. Chang, Chun-Tao & Teng, Jinn-Tsair & Goyal, Suresh Kumar, 2010. "Optimal replenishment policies for non-instantaneous deteriorating items with stock-dependent demand," International Journal of Production Economics, Elsevier, vol. 123(1), pages 62-68, January.
    3. Datta, T. K. & Paul, K. & Pal, A. K., 1998. "Demand promotion by upgradation under stock-dependent demand situation - a model," International Journal of Production Economics, Elsevier, vol. 55(1), pages 31-38, June.
    4. Bhaskar Bhaula & Jayanta Kumar Dash & M. Rajendra Kumar, 2019. "An optimal inventory model for perishable items under successive price discounts with permissible delay in payments," OPSEARCH, Springer;Operational Research Society of India, vol. 56(1), pages 261-281, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cynthia Griselle De-la-Cruz-Márquez & Leopoldo Eduardo Cárdenas-Barrón & Buddhadev Mandal & Neale R. Smith & Rafael Ernesto Bourguet-Díaz & Imelda de Jesús Loera-Hernández & Armando Céspedes-Mota & Ge, 2022. "An Inventory Model in a Three-Echelon Supply Chain for Growing Items with Imperfect Quality, Mortality, and Shortages under Carbon Emissions When the Demand Is Price Sensitive," Mathematics, MDPI, vol. 10(24), pages 1-41, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dye, Chung-Yuan, 2013. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model," Omega, Elsevier, vol. 41(5), pages 872-880.
    2. Pan, Qin-hua & He, Xiuli & Skouri, Konstantina & Chen, Sheng-Chih & Teng, Jinn-Tsair, 2018. "An inventory replenishment system with two inventory-based substitutable products," International Journal of Production Economics, Elsevier, vol. 204(C), pages 135-147.
    3. Boualem Alleche & Vicenţiu D. Rădulescu, 2017. "Further on Set-Valued Equilibrium Problems and Applications to Browder Variational Inclusions," Journal of Optimization Theory and Applications, Springer, vol. 175(1), pages 39-58, October.
    4. Sorin-Mihai Grad & Felipe Lara, 2022. "An extension of the proximal point algorithm beyond convexity," Journal of Global Optimization, Springer, vol. 82(2), pages 313-329, February.
    5. Alberto Del Pia & Robert Hildebrand & Robert Weismantel & Kevin Zemmer, 2016. "Minimizing Cubic and Homogeneous Polynomials over Integers in the Plane," Mathematics of Operations Research, INFORMS, vol. 41(2), pages 511-530, May.
    6. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    7. A. Kabgani & F. Lara, 2023. "Semistrictly and neatly quasiconvex programming using lower global subdifferentials," Journal of Global Optimization, Springer, vol. 86(4), pages 845-865, August.
    8. Giorgio, 2019. "On Second-Order Optimality Conditions in Smooth Nonlinear Programming Problems," DEM Working Papers Series 171, University of Pavia, Department of Economics and Management.
    9. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    10. Ajoy Hatibaruah & Sumit Saha, 2023. "An inventory model for two-parameter Weibull distributed ameliorating and deteriorating items with stock and advertisement frequency dependent demand under trade credit and preservation technology," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 951-1002, June.
    11. Li, Ruihai & Chan, Ya-Lan & Chang, Chun-Tao & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Pricing and lot-sizing policies for perishable products with advance-cash-credit payments by a discounted cash-flow analysis," International Journal of Production Economics, Elsevier, vol. 193(C), pages 578-589.
    12. Teng, Jinn-Tsair & Krommyda, Iris-Pandora & Skouri, Konstantina & Lou, Kuo-Ren, 2011. "A comprehensive extension of optimal ordering policy for stock-dependent demand under progressive payment scheme," European Journal of Operational Research, Elsevier, vol. 215(1), pages 97-104, November.
    13. Reza Maihami & Behrooz Karimi & Seyyed Mohammad Taghi Fatemi Ghomi, 2017. "Effect of two-echelon trade credit on pricing-inventory policy of non-instantaneous deteriorating products with probabilistic demand and deterioration functions," Annals of Operations Research, Springer, vol. 257(1), pages 237-273, October.
    14. R. Cambini & R. Riccardi & D. Scopelliti, 2023. "Solving linear multiplicative programs via branch-and-bound: a computational experience," Computational Management Science, Springer, vol. 20(1), pages 1-32, December.
    15. Kock, Anders Bredahl & Preinerstorfer, David & Veliyev, Bezirgen, 2023. "Treatment recommendation with distributional targets," Journal of Econometrics, Elsevier, vol. 234(2), pages 624-646.
    16. Roy, Arindam & kar, Samarjit & Maiti, Manoranjan, 2010. "A volume flexible production-policy for randomly deteriorating item with trended demand and shortages," International Journal of Production Economics, Elsevier, vol. 128(1), pages 188-199, November.
    17. Zhang, Jianxiong & Wang, Yu & Lu, Lihao & Tang, Wansheng, 2015. "Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 136-145.
    18. 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).
    19. Dye, Chung-Yuan & Yang, Chih-Te & Kung, Fang-Cheng, 2014. "A note on “Seller’s optimal credit period and cycle time in a supply chain for deteriorating items with maximum lifetime”," European Journal of Operational Research, Elsevier, vol. 239(3), pages 868-871.
    20. Dobson, Gregory & Pinker, Edieal J. & Yildiz, Ozlem, 2017. "An EOQ model for perishable goods with age-dependent demand rate," European Journal of Operational Research, Elsevier, vol. 257(1), pages 84-88.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:14:y:2021:i:9:p:398-:d:621213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.