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Inventory models for perishable items with advanced payment, linearly time-dependent holding cost and demand dependent on advertisement and selling price

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  • Al-Amin Khan, Md.
  • Shaikh, Ali Akbar
  • Konstantaras, Ioannis
  • Bhunia, Asoke Kumar
  • Cárdenas-Barrón, Leopoldo Eduardo

Abstract

Advertisement is one of the most effective ways to spread out the popularity of the product for all categories of customers. Consequently, this has a direct impact to aggrandize product's demand to a great extent. On the other hand, if the maximum lifetime of a product is expired once then it can neither be useable nor be re-useable. Thus the date of maximum life time of the product is an essential issue in inventory management. Advance payment is another important factor among interrelation of suppliers and retailers for a highly demanding seasonal product. Combining these issues, two different inventory models for perishable items are formulated under linearly time-dependent increasing holding cost whereas demand of the product is dependent on the selling price of the product and the frequency of advertisement as well. In the first model, shortages are not considered whereas in the second one, partial backlogged shortages are incorporated. In both cases, the optimality of the proposed inventory models is discussed theoretically along with its solution algorithm. To validate the proposed models, three numerical examples are solved. Finally, the effect of changes of different parameters is studied numerically to perform a sensitivity analysis and a fruitful conclusion is done.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:proeco:v:230:y:2020:i:c:s0925527320301791
    DOI: 10.1016/j.ijpe.2020.107804
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    References listed on IDEAS

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    Cited by:

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    4. Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    5. Mridha, Bablu & Sarkar, Biswajit & Cárdenas-Barrón, Leopoldo Eduardo & Ramana, G.V. & Yang, Liu, 2024. "Is the advertisement policy for dual-channel profitable for retailing and consumer service of a retail management system under emissions-controlled flexible production system?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    6. Sarkar, Biswajit & Kar, Sumi & Basu, Kajla & Seo, Yong Won, 2023. "Is the online-offline buy-online-pickup-in-store retail strategy best among other product delivery strategies under variable lead time?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    7. Mei-Chuan Cheng & Chun-Tao Chang & Tsu-Pang Hsieh, 2023. "An Inventory Model with Advertisement- and Customer-Relationship-Management-Sensitive Demand for a Product’s Life Cycle," Mathematics, MDPI, vol. 11(6), pages 1-16, March.
    8. Majed G. Alharbi, 2022. "Carbon Reduction Technology Based on Imperfect Production System for Deteriorating Items with Warranty Periods and Greenness Dependent Demand," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    9. Bikash Koli Dey & Hyesung Seok, 2024. "Intelligent inventory management with autonomation and service strategy," Journal of Intelligent Manufacturing, Springer, vol. 35(1), pages 307-330, January.
    10. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    11. Nita Shah & Pratik Shah & Milan Patel, 2022. "Pricing Decisions with Effect of Advertisement and Greening Efforts for a Greengocer," Sustainability, MDPI, vol. 14(21), pages 1-12, October.
    12. Viswanath Jagadeesan & Thilagavathi Rajamanickam & Vladimira Schindlerova & Sreelakshmi Subbarayan & Robert Cep, 2023. "A Study on Two-Warehouse Inventory Systems with Integrated Multi-Purpose Production Unit and Partitioned Rental Warehouse," Mathematics, MDPI, vol. 11(18), pages 1-24, September.
    13. Asim Paul & Magfura Pervin & Sankar Kumar Roy & Nelson Maculan & Gerhard-Wilhelm Weber, 2022. "A green inventory model with the effect of carbon taxation," Annals of Operations Research, Springer, vol. 309(1), pages 233-248, February.
    14. Khan, Md. Al-Amin & Cárdenas-Barrón, Leopoldo Eduardo & Treviño-Garza, Gerardo & Céspedes-Mota, Armando, 2023. "Installment for advance payment and pricing decisions for an inventory system under power demand pattern and all-units discount," International Journal of Production Economics, Elsevier, vol. 265(C).
    15. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    16. Meng Zhang & Yongxi Yi & Chunyan Fu & Yuqiong Li, 2023. "Green supply chain coordination model under environmental impact and conformance quality sensitive consumer demand," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1410-1435, April.
    17. Peng, Weicai & Tian, Zhongjun, 2022. "Information acquisition, selling effort and pre-order strategy," International Journal of Production Economics, Elsevier, vol. 249(C).
    18. Heibatolah Sadeghi & Hêriş Golpîra & Faicel Hnaien & Cosimo Magazzino, 2023. "Pricing-inventory model with discrete demand and delivery orders," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 119-139.
    19. Biman Kanti Nath & Nabendu Sen, 2022. "A Partially Backlogged Inventory Model for Time-Deteriorating Items Using Penalty Cost and Time-Dependent Holding Cost," SN Operations Research Forum, Springer, vol. 3(4), pages 1-14, December.
    20. 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.
    21. Chandan Mahato & Gour Chandra Mahata, 2023. "Optimal Pricing and Inventory Decisions for Perishable Products with Multivariate Demand Function Under Trade Credit," SN Operations Research Forum, Springer, vol. 4(2), pages 1-26, June.

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