Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model
In this proposed research, clear prospects of a real life marketing scenario, by analyzing a price discount policy and variable demand, are derived. The proposed study presents a production model along with time-dependent and selling price related demand for decaying items. Items deteriorate over ti...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-09-01
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| Series: | Inventions |
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| Online Access: | https://www.mdpi.com/2411-5134/5/3/50 |
| _version_ | 1797553156521984000 |
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| author | Sharmila Saren Biswajit Sarkar Raj Kumar Bachar |
| author_facet | Sharmila Saren Biswajit Sarkar Raj Kumar Bachar |
| author_sort | Sharmila Saren |
| collection | DOAJ |
| description | In this proposed research, clear prospects of a real life marketing scenario, by analyzing a price discount policy and variable demand, are derived. The proposed study presents a production model along with time-dependent and selling price related demand for decaying items. Items deteriorate over time, therefore, considering deterioration in this model makes it more acceptable to the present marketing situation. The concept of delay-in-payments is utilized in this inventory system. In this research, a retailer buys some products, enjoys constant credit-period offers which are provided by the supplier. This model depicts a price discount strategy which is based on purchasing cost to attract more consumers in any business industry. By using this strategy, any manufacturer or business may gain more profit in comparison to methods suggested by earlier literature. The average profit function of the inventory system is maximized analytically and also finds the selling-price per unit and duration of the inventory cycle optimally. A numerical example, along with a case study and their graphical representations, are incorporated to verify the optimality of this research very clearly. The findings of this research have maximized the average profit function more than the existing literature. |
| first_indexed | 2024-03-10T16:11:28Z |
| format | Article |
| id | doaj.art-34b55546fd8c4bdc8d877f4c281ac59a |
| institution | Directory Open Access Journal |
| issn | 2411-5134 |
| language | English |
| last_indexed | 2024-03-10T16:11:28Z |
| publishDate | 2020-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Inventions |
| spelling | doaj.art-34b55546fd8c4bdc8d877f4c281ac59a2023-11-20T14:24:48ZengMDPI AGInventions2411-51342020-09-01535010.3390/inventions5030050Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory ModelSharmila Saren0Biswajit Sarkar1Raj Kumar Bachar2Department of Mathematics, Government General Degree College, Gopiballavpur-II, Beliaberah, Jhargram, West Bengal 721517, IndiaDepartment of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seadaemun-gu, Seoul 03722, KoreaDepartment of Mathematics, Kazi Nazrul University, Asansol, West Bengal 713340, IndiaIn this proposed research, clear prospects of a real life marketing scenario, by analyzing a price discount policy and variable demand, are derived. The proposed study presents a production model along with time-dependent and selling price related demand for decaying items. Items deteriorate over time, therefore, considering deterioration in this model makes it more acceptable to the present marketing situation. The concept of delay-in-payments is utilized in this inventory system. In this research, a retailer buys some products, enjoys constant credit-period offers which are provided by the supplier. This model depicts a price discount strategy which is based on purchasing cost to attract more consumers in any business industry. By using this strategy, any manufacturer or business may gain more profit in comparison to methods suggested by earlier literature. The average profit function of the inventory system is maximized analytically and also finds the selling-price per unit and duration of the inventory cycle optimally. A numerical example, along with a case study and their graphical representations, are incorporated to verify the optimality of this research very clearly. The findings of this research have maximized the average profit function more than the existing literature.https://www.mdpi.com/2411-5134/5/3/50variable demandcredit periodprice discountproductiondeterioration |
| spellingShingle | Sharmila Saren Biswajit Sarkar Raj Kumar Bachar Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model Inventions variable demand credit period price discount production deterioration |
| title | Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model |
| title_full | Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model |
| title_fullStr | Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model |
| title_full_unstemmed | Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model |
| title_short | Application of Various Price-Discount Policy for Deteriorated Products and Delay-in-Payments in an Advanced Inventory Model |
| title_sort | application of various price discount policy for deteriorated products and delay in payments in an advanced inventory model |
| topic | variable demand credit period price discount production deterioration |
| url | https://www.mdpi.com/2411-5134/5/3/50 |
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