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The effect of preservation technology investment on a non-instantaneous deteriorating inventory model

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  • Dye, Chung-Yuan

Abstract

Considering an inventory system with a non-instantaneous deteriorating item, our objective is to study the effect of preservation technology investment on inventory decisions. The generalized productivity of invested capital, deterioration and time-depend partial backlogging rates are used to model the inventory system. The basic results of fractional programming are employed to prove the uniqueness of the global maximum for each case. We also establish several structural properties on finding the optimal replenishment and preservation technology strategies. Further, we use a couple of numerical examples to illustrate the results and conclude the paper with suggestions for possible future researches.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jomega:v:41:y:2013:i:5:p:872-880
    DOI: 10.1016/j.omega.2012.11.002
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    References listed on IDEAS

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    8. Shah, Nita H & Soni, Hardik N & Patel, Kamlesh A, 2013. "Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates," Omega, Elsevier, vol. 41(2), pages 421-430.
    9. P. L. Abad, 1996. "Optimal Pricing and Lot-Sizing Under Conditions of Perishability and Partial Backordering," Management Science, INFORMS, vol. 42(8), pages 1093-1104, August.
    10. Hsu, P.H. & Wee, H.M. & Teng, H.M., 2010. "Preservation technology investment for deteriorating inventory," International Journal of Production Economics, Elsevier, vol. 124(2), pages 388-394, April.
    11. Wu, Kun-Shan & Ouyang, Liang-Yuh & Yang, Chih-Te, 2006. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging," International Journal of Production Economics, Elsevier, vol. 101(2), pages 369-384, June.
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    Citations

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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.
    2. Dye, Chung-Yuan & Yang, Chih-Te, 2016. "Optimal dynamic pricing and preservation technology investment for deteriorating products with reference price effects," Omega, Elsevier, vol. 62(C), pages 52-67.
    3. Wu, Jiang & Al-khateeb, Faisal B. & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "Inventory models for deteriorating items with maximum lifetime under downstream partial trade credits to credit-risk customers by discounted cash-flow analysis," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 105-115.
    4. Zhang, Jianxiong & Liu, Guowei & Zhang, Qiao & Bai, Zhenyu, 2015. "Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract," Omega, Elsevier, vol. 56(C), pages 37-49.
    5. repec:spr:ijsaem:v:8:y:2017:i:2:d:10.1007_s13198-017-0605-9 is not listed on IDEAS
    6. 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.
    7. Chen, Sheng-Chih & Teng, Jinn-Tsair, 2015. "Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis," European Journal of Operational Research, Elsevier, vol. 243(2), pages 566-575.
    8. repec:spr:annopr:v:257:y:2017:i:1:d:10.1007_s10479-016-2195-3 is not listed on IDEAS
    9. Wu, Jiang & Ouyang, Liang-Yuh & Cárdenas-Barrón, Leopoldo Eduardo & Goyal, Suresh Kumar, 2014. "Optimal credit period and lot size for deteriorating items with expiration dates under two-level trade credit financing," European Journal of Operational Research, Elsevier, vol. 237(3), pages 898-908.
    10. Assid, M. & Gharbi, A. & Dhouib, K., 2015. "Joint production and subcontracting planning of unreliable multi-facility multi-product production systems," Omega, Elsevier, vol. 50(C), pages 54-69.
    11. Wu, Jiang & Chan, Ya-Lan, 2014. "Lot-sizing policies for deteriorating items with expiration dates and partial trade credit to credit-risk customers," International Journal of Production Economics, Elsevier, vol. 155(C), pages 292-301.
    12. Soni, Hardik N, 2013. "Optimal replenishment policies for non-instantaneous deteriorating items with price and stock sensitive demand under permissible delay in payment," International Journal of Production Economics, Elsevier, vol. 146(1), pages 259-268.
    13. Dye, Chung-Yuan & Yang, Chih-Te, 2016. "A note on “Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract”," Omega, Elsevier, vol. 62(C), pages 115-122.
    14. repec:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2179-3 is not listed on IDEAS
    15. repec:eee:proeco:v:193:y:2017:i:c:p:343-351 is not listed on IDEAS
    16. repec:spr:annopr:v:254:y:2017:i:1:d:10.1007_s10479-017-2419-1 is not listed on IDEAS
    17. Kouki, Chaaben & Jouini, Oualid, 2015. "On the effect of lifetime variability on the performance of inventory systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 23-34.
    18. 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.
    19. Feng, Lin & Chan, Ya-Lan & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Pricing and lot-sizing polices for perishable goods when the demand depends on selling price, displayed stocks, and expiration date," International Journal of Production Economics, Elsevier, vol. 185(C), pages 11-20.
    20. repec:eee:jomega:v:75:y:2018:i:c:p:13-26 is not listed on IDEAS

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