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A joint replenishment inventory model for substitutable deteriorating items under advance payment with price discounts

Author

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  • C. Jayasankari
  • R. Uthayakumar

Abstract

The substitution process is the most impeccable one in the inventory model for deteriorating items considering their lifetime issues. In this developed model, we worked on the inventory system for substitutable deteriorating items (product 1 and product 2); and both products are similar. The demand of the product is considered to have three different types, including constant, price-dependent, and promotional effort-dependent demand, to show the uncertainty of demand for a product in real life, and it is a manufacturer-retailer supply chain, where the manufacturer gives the pre-payment option and also cash discount to the retailer. In the substitution phase, we considered three various cases according to the inventory level of products 1 and 2. Direct and indirect carbon emissions in production and transportation were also considered. Numerical examples were used to verify the developed model. Sensitivity analysis was carried out to verify the obtained optimal values.

Suggested Citation

  • C. Jayasankari & R. Uthayakumar, 2025. "A joint replenishment inventory model for substitutable deteriorating items under advance payment with price discounts," Journal of Management Analytics, Taylor & Francis Journals, vol. 12(4), pages 730-758, October.
    • Handle: RePEc:taf:tjmaxx:v:12:y:2025:i:4:p:730-758
    DOI: 10.1080/23270012.2025.2465255
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