IDEAS home Printed from https://ideas.repec.org/a/eee/apmaco/v256y2015icp831-850.html
   My bibliography  Save this article

An application of PSO in a two-warehouse inventory model for deteriorating item under permissible delay in payment with different inventory policies

Author

Listed:
  • Bhunia, A.K.
  • Shaikh, Ali Akbar

Abstract

This paper deals with an alternative approach for a two-warehouse inventory model for single deteriorating item considering allowable delay in payments with two separate warehouses having different preserving facilities. Partially backlogged shortages are allowed with a rate dependent on the duration of waiting time up to the arrival of next lot. Here, two different types of inventory policies, viz. inventory follows shortage (IFS) and shortage follows inventory (SFI) have been considered. To formulate the model, different realistic scenarios and sub scenarios in each policy have been investigated. The corresponding problems have been formulated as non-linear constrained optimization problems and solved by different versions of PSO algorithm. Then, to illustrate the model as well as to test the performance of the PSO algorithm, four numerical examples have been solved and the computational results have been compared. Finally, to study the effect of changes of different parameters, sensitivity analyses have been carried out by changing one parameter at a time and keeping the others at their original values.

Suggested Citation

  • Bhunia, A.K. & Shaikh, Ali Akbar, 2015. "An application of PSO in a two-warehouse inventory model for deteriorating item under permissible delay in payment with different inventory policies," Applied Mathematics and Computation, Elsevier, vol. 256(C), pages 831-850.
    • Handle: RePEc:eee:apmaco:v:256:y:2015:i:c:p:831-850
    DOI: 10.1016/j.amc.2014.12.137
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0096300314017986
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.amc.2014.12.137?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sana, Shib Sankar & Chaudhuri, K.S., 2008. "A deterministic EOQ model with delays in payments and price-discount offers," European Journal of Operational Research, Elsevier, vol. 184(2), pages 509-533, January.
    2. Maiti, Manas Kumar, 2008. "Fuzzy inventory model with two warehouses under possibility measure on fuzzy goal," European Journal of Operational Research, Elsevier, vol. 188(3), pages 746-774, August.
    3. Chandra Jaggi & Priyanka Verma, 2008. "Joint optimization of price and order quantity with shortages for a two-warehouse system," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(1), pages 195-213, July.
    4. Abad, P. L. & Jaggi, C. K., 2003. "A joint approach for setting unit price and the length of the credit period for a seller when end demand is price sensitive," International Journal of Production Economics, Elsevier, vol. 83(2), pages 115-122, February.
    5. Huang, Yung-Fu, 2007. "Optimal retailer's replenishment decisions in the EPQ model under two levels of trade credit policy," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1577-1591, February.
    6. Ho, Chia-Huei & Ouyang, Liang-Yuh & Su, Chia-Hsien, 2008. "Optimal pricing, shipment and payment policy for an integrated supplier-buyer inventory model with two-part trade credit," European Journal of Operational Research, Elsevier, vol. 187(2), pages 496-510, June.
    7. Niu, Bo & Xie, Jinxing, 2008. "A note on "Two-warehouse inventory model with deterioration under FIFO dispatch policy"," European Journal of Operational Research, Elsevier, vol. 190(2), pages 571-577, October.
    8. Chandra Jaggi & Aditi Khanna & Priyanka Verma, 2011. "Two-warehouse partial backlogging inventory model for deteriorating items with linear trend in demand under inflationary conditions," International Journal of Systems Science, Taylor & Francis Journals, vol. 42(7), pages 1185-1196.
    9. Lee, Chun Chen & Hsu, Shu-Lu, 2009. "A two-warehouse production model for deteriorating inventory items with time-dependent demands," European Journal of Operational Research, Elsevier, vol. 194(3), pages 700-710, May.
    10. Dey, Jayanta Kumar & Mondal, Shyamal Kumar & Maiti, Manoranjan, 2008. "Two storage inventory problem with dynamic demand and interval valued lead-time over finite time horizon under inflation and time-value of money," European Journal of Operational Research, Elsevier, vol. 185(1), pages 170-194, February.
    11. Charles W. Haley & Robert C. Higgins, 1973. "Inventory Policy and Trade Credit Financing," Management Science, INFORMS, vol. 20(4-Part-I), pages 464-471, December.
    12. Yang, Hui-Ling, 2012. "Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 107-116.
    13. Chandra K. Jaggi & K.K. Aggarwal & Priyanka Verma, 2010. "Inventory and pricing strategies for deteriorating items with limited capacity and time-proportional backlogging rate," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 8(3), pages 331-354.
    14. Huang, Yung-Fu, 2007. "Economic order quantity under conditionally permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 176(2), pages 911-924, January.
    15. Chung, Kun-Jen & Huang, Tien-Shou, 2007. "The optimal retailer's ordering policies for deteriorating items with limited storage capacity under trade credit financing," International Journal of Production Economics, Elsevier, vol. 106(1), pages 127-145, March.
    16. Bhunia, A.K. & Jaggi, Chandra K. & Sharma, Anuj & Sharma, Ritu, 2014. "A two-warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 1125-1137.
    17. Hsieh, Tsu-Pang & Dye, Chung-Yuan & Ouyang, Liang-Yuh, 2008. "Determining optimal lot size for a two-warehouse system with deterioration and shortages using net present value," European Journal of Operational Research, Elsevier, vol. 191(1), pages 182-192, November.
    18. A.K. Bhunia & A.A. Shaikh & R.K. Gupta, 2015. "A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 1036-1050, April.
    19. Huang, Yung-Fu & Hsu, Kuang-Hua, 2008. "An EOQ model under retailer partial trade credit policy in supply chain," International Journal of Production Economics, Elsevier, vol. 112(2), pages 655-664, April.
    20. Chandra K. Jaggi & Amrina Kausar, 2011. "Retailer’s Ordering Policy in a Supply Chain when Demand is Price and Credit Period Dependent," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 2(4), pages 61-74, October.
    21. Rong, M. & Mahapatra, N.K. & Maiti, M., 2008. "A two warehouse inventory model for a deteriorating item with partially/fully backlogged shortage and fuzzy lead time," European Journal of Operational Research, Elsevier, vol. 189(1), pages 59-75, August.
    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. Mohsen Lashgari & Ata Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    2. 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.
    3. Sunil Tiwari & Chandra K. Jaggi & Asoke Kumar Bhunia & Ali Akbar Shaikh & Mark Goh, 2017. "Two-warehouse inventory model for non-instantaneous deteriorating items with stock-dependent demand and inflation using particle swarm optimization," Annals of Operations Research, Springer, vol. 254(1), pages 401-423, July.
    4. Saha, Subrata & Chatterjee, Debajyoti & Sarkar, Biswajit, 2021. "The ramification of dynamic investment on the promotion and preservation technology for inventory management through a modified flower pollination algorithm," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    5. Mrudul Y. Jani & Heta A. Patel & Amrita Bhadoriya & Urmila Chaudhari & Mohamed Abbas & Malak S. Alqahtani, 2023. "Deterioration Control Decision Support System for the Retailer during Availability of Trade Credit and Shortages," Mathematics, MDPI, vol. 11(3), pages 1-27, January.
    6. Anil K. Agrawal & Amit Ambar Gupta & Manu K. Vora, 2021. "Optimal pricing and lot-sizing policies under promotional expense for some Veblen products," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 83-108, March.
    7. A.K. Agrawal & A.A. Gupta & M.K. Vora, 2020. "Pricing and lot-sizing policies for products with demand under Veblen effect," Operations Management Research, Springer, vol. 13(1), pages 85-93, June.
    8. Mohsen Lashgari & Ata Allah Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.

    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. Bhunia, A.K. & Jaggi, Chandra K. & Sharma, Anuj & Sharma, Ritu, 2014. "A two-warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 1125-1137.
    2. Majumder, P. & Bera, U.K. & Maiti, M., 2016. "An EPQ model for two-warehouse in unremitting release pattern with two-level trade credit period concerning both supplier and retailer," Applied Mathematics and Computation, Elsevier, vol. 274(C), pages 430-458.
    3. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Khanna, Aditi & Jaggi, Chandra K., 2016. "Impact of trade credit and inflation on retailer's ordering policies for non-instantaneous deteriorating items in a two-warehouse environment," International Journal of Production Economics, Elsevier, vol. 176(C), pages 154-169.
    4. Yu, Jonas C.P., 2019. "Optimizing a two-warehouse system under shortage backordering, trade credit, and decreasing rental conditions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 147-155.
    5. Zhou, Yong-Wu & Zhong, Yuanguang & Li, Jicai, 2012. "An uncooperative order model for items with trade credit, inventory-dependent demand and limited displayed-shelf space," European Journal of Operational Research, Elsevier, vol. 223(1), pages 76-85.
    6. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    7. Xu, Xinhan & Chen, Xiangfeng & Jia, Fu & Brown, Steve & Gong, Yu & Xu, Yifan, 2018. "Supply chain finance: A systematic literature review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 160-173.
    8. A.K. Bhunia & A.A. Shaikh & R.K. Gupta, 2015. "A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 1036-1050, April.
    9. Kun-Jen Chung & Jui-Jung Liao & Shy-Der Lin & Sheng-Tu Chuang & Hari Mohan Srivastava, 2019. "The Inventory Model for Deteriorating Items under Conditions Involving Cash Discount and Trade Credit," Mathematics, MDPI, vol. 7(7), pages 1-20, July.
    10. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.
    11. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    12. Beatrice Marchi & Lucio E. Zavanella & Simone Zanoni, 2023. "Supply chain finance for ameliorating and deteriorating products: a systematic literature review," Journal of Business Economics, Springer, vol. 93(3), pages 359-388, April.
    13. Asoke Kumar Bhunia & Ali Akbar Shaikh, 2016. "Investigation of two-warehouse inventory problems in interval environment under inflation via particle swarm optimization," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 22(2), pages 160-179, March.
    14. Seifert, Daniel & Seifert, Ralf W. & Protopappa-Sieke, Margarita, 2013. "A review of trade credit literature: Opportunities for research in operations," European Journal of Operational Research, Elsevier, vol. 231(2), pages 245-256.
    15. Johari, Maryam & Hosseini-Motlagh, Seyyed-Mahdi & Nematollahi, Mohammadreza & Goh, Mark & Ignatius, Joshua, 2018. "Bi-level credit period coordination for periodic review inventory system with price-credit dependent demand under time value of money," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 270-291.
    16. Liao, Jui-Jung & Chung, Kun-Jen & Huang, Kuo-Nan, 2013. "A deterministic inventory model for deteriorating items with two warehouses and trade credit in a supply chain system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 557-565.
    17. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    18. 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.
    19. P. Majumder & U. K. Bera & M. Maiti, 2020. "An EPQ model of substitutable products under trade credit policy with stock dependent and random substitution," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1205-1243, December.
    20. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.

    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:eee:apmaco:v:256:y:2015:i:c:p:831-850. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/applied-mathematics-and-computation .

    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.