IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v53y2016i2d10.1007_s12597-015-0233-6.html
   My bibliography  Save this article

EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands

Author

Listed:
  • Manoranjan De

    (Vidyasagar University)

  • Barun Das

    (Sidho-Kanho-Birsha University)

  • Manoranjan Maiti

    (Vidyasagar University)

Abstract

This paper considers a multi-item, imperfect economic production lot-size (EPL) model with advertisement/promotional cost and selling price dependent demand and partially rework under a budget constraint. The items are either complementary or substitute to each other. In the EPL models, defective production commences from the out-of-control state, after the passage of some time from production commencement. Its occurrence is random after the lapse of certain time and it is imposed here through a chance constraint. The set-up cost is partly production dependent. Unit production cost is also production dependent and a part of it is taken as environment protection cost. Defective rate is also assumed to be random and production dependent. The model is formulated as an average profit maximization problem subject to chance constraints and a budget constraint and solved using the generalized reduced gradient method (GRG). Several special cases are derived and numerical experiments are performed to illustrate the general and particular models. Some sensitivity analyses are presented against few model parameters.

Suggested Citation

  • Manoranjan De & Barun Das & Manoranjan Maiti, 2016. "EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 259-277, June.
    • Handle: RePEc:spr:opsear:v:53:y:2016:i:2:d:10.1007_s12597-015-0233-6
    DOI: 10.1007/s12597-015-0233-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-015-0233-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-015-0233-6?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. Wee, Hui-Ming, 1999. "Deteriorating inventory model with quantity discount, pricing and partial backordering," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 511-518, March.
    2. Baker, R. C. & Urban, Timothy L., 1991. "Deterministic fixed order-level inventory models: An application for replenishment of radioactive source material for irradiation sterilizers," European Journal of Operational Research, Elsevier, vol. 50(3), pages 249-256, February.
    3. Burwell, Timothy H. & Dave, Dinesh S. & Fitzpatrick, Kathy E. & Roy, Melvin R., 1997. "Economic lot size model for price-dependent demand under quantity and freight discounts," International Journal of Production Economics, Elsevier, vol. 48(2), pages 141-155, January.
    4. Chandra K. Jaggi & K.K. Aggarwal & Priyanka Verma, 2010. "Two-warehouse inventory model for deteriorating items when demand is price sensitive," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 7(4), pages 530-551.
    5. Biswajit Sarkar & Shib Sankar Sana & Kripasindhu Chaudhuri, 2010. "Optimal reliability, production lot size and safety stock in an imperfect production system," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 2(4), pages 467-490.
    6. Goswami, Adrijit & Chaudhuri, K. S., 1992. "Variations of order-level inventory models for deteriorating items," International Journal of Production Economics, Elsevier, vol. 27(2), pages 111-117, May.
    7. Panda, D. & Kar, S. & Maity, K. & Maiti, M., 2008. "A single period inventory model with imperfect production and stochastic demand under chance and imprecise constraints," European Journal of Operational Research, Elsevier, vol. 188(1), pages 121-139, July.
    8. Salameh, M. K. & Jaber, M. Y., 2000. "Economic production quantity model for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 59-64, March.
    9. 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.
    10. 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.
    11. Cárdenas-Barrón, Leopoldo Eduardo & Sana, Shib Sankar, 2014. "A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams׳ initiatives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 249-258.
    12. Pal, A.K. & Bhunia, A.K. & Mukherjee, R.N., 2006. "Optimal lot size model for deteriorating items with demand rate dependent on displayed stock level (DSL) and partial backordering," European Journal of Operational Research, Elsevier, vol. 175(2), pages 977-991, December.
    13. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.
    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. Harun Öztürk, 2019. "Modeling an inventory problem with random supply, inspection and machine breakdown," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 497-527, June.
    2. Prasanta Kumar Ghosh & Amalesh Kumar Manna & Jayanta Kumar Dey & Samarjit Kar, 2023. "Optimal production run in an imperfect production process with maintenance under warranty and product insurance," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 720-752, June.
    3. 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.

    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. Ashoke Kumar Bera & Dipak Kumar Jana, 2017. "Multi-item imperfect production inventory model in Bi-fuzzy environments," OPSEARCH, Springer;Operational Research Society of India, vol. 54(2), pages 260-282, June.
    2. Pal, Brojeswar & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2014. "Joint pricing and ordering policy for two echelon imperfect production inventory model with two cycles," International Journal of Production Economics, Elsevier, vol. 155(C), pages 229-238.
    3. Chang Wook Kang & Misbah Ullah & Mitali Sarkar & Muhammad Omair & Biswajit Sarkar, 2019. "A Single-Stage Manufacturing Model with Imperfect Items, Inspections, Rework, and Planned Backorders," Mathematics, MDPI, vol. 7(5), pages 1-18, May.
    4. Sana, Shib Sankar, 2012. "A collaborating inventory model in a supply chain," Economic Modelling, Elsevier, vol. 29(5), pages 2016-2023.
    5. Hsu, Jia-Tzer & Hsu, Lie-Fern, 2013. "An EOQ model with imperfect quality items, inspection errors, shortage backordering, and sales returns," International Journal of Production Economics, Elsevier, vol. 143(1), pages 162-170.
    6. Tien-Yu Lin & Kuo-Lung Hou, 2015. "An imperfect quality economic order quantity with advanced receiving," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 23(2), pages 535-551, July.
    7. 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.
    8. San-José, Luis A. & García-Laguna, Juan, 2009. "Optimal policy for an inventory system with backlogging and all-units discounts: Application to the composite lot size model," European Journal of Operational Research, Elsevier, vol. 192(3), pages 808-823, February.
    9. 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.
    10. 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.
    11. Bimal Kumar Sett & Bikash Koli Dey & Biswajit Sarkar, 2020. "Autonomated Inspection Policy for Smart Factory—An Improved Approach," Mathematics, MDPI, vol. 8(10), pages 1-19, October.
    12. Tapan Kumar Datta, 2017. "Inventory system with defective products and investment opportunity for reducing defective proportion," Operational Research, Springer, vol. 17(1), pages 297-312, April.
    13. Sarkar, Mitali & Sarkar, Biswajit, 2013. "An economic manufacturing quantity model with probabilistic deterioration in a production system," Economic Modelling, Elsevier, vol. 31(C), pages 245-252.
    14. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Behrouz Afshar-Nadjafi, 2020. "Lot-sizing problem for a defective processing system with categorized items, backordering and pricing policy," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(4), pages 255-265, August.
    15. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
    16. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
    17. Osama Abdulaziz Alamri & Navneet Kumar Lamba & Mahesh Kumar Jayaswal & Mandeep Mittal, 2024. "A Sustainable Inventory Model with Advertisement Effort for Imperfect Quality Items under Learning in Fuzzy Monsoon Demand," Mathematics, MDPI, vol. 12(15), pages 1-41, August.
    18. Ata Allah Taleizadeh & Bita Hazarkhani & Ilkyeong Moon, 2020. "Joint pricing and inventory decisions with carbon emission considerations, partial backordering and planned discounts," Annals of Operations Research, Springer, vol. 290(1), pages 95-113, July.
    19. Debasis Das & Arindam Roy & Samarjit Kar, 2015. "A multi-warehouse partial backlogging inventory model for deteriorating items under inflation when a delay in payment is permissible," Annals of Operations Research, Springer, vol. 226(1), pages 133-162, March.
    20. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).

    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:spr:opsear:v:53:y:2016:i:2:d:10.1007_s12597-015-0233-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.