Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh
This work studies an inventory planning problem for a practitioner selling a non-immediate perishable item after purchasing it from a supplier within a quantity-based discount frame and assesses the impact of the discount frame on the practitioner’s costs. Due to perishability, consumption behavior...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-10-01
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| Series: | Journal of King Saud University: Science |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1018364723003026 |
| _version_ | 1827819961997852672 |
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| author | Md. Rukonuzzaman Md. Al-Amin Khan Aminur Rahman Khan Ali AlArjani Md. Sharif Uddin El-Awady Attia |
| author_facet | Md. Rukonuzzaman Md. Al-Amin Khan Aminur Rahman Khan Ali AlArjani Md. Sharif Uddin El-Awady Attia |
| author_sort | Md. Rukonuzzaman |
| collection | DOAJ |
| description | This work studies an inventory planning problem for a practitioner selling a non-immediate perishable item after purchasing it from a supplier within a quantity-based discount frame and assesses the impact of the discount frame on the practitioner’s costs. Due to perishability, consumption behavior is directly interconnected with the storage time of the items. The foremost objective of this work is to provide, for the first time, proper inventory planning to minimize the practitioner’s total cost under a quantity-based discount frame when demand changes with the product’s storage time. To make this inventory planning problem more realistic, both zero-ending and stock-out situations are investigated. Under both scenarios, the optimal inventory plan for the practitioner is examined analytically, and then, integrating the analytical results, two solution algorithms are presented under the quantity-based discount frame. In order to verify the investigated inventory problem and scrutinize the efficiency of the algorithms as well, a real example of a mango business is inspected. Several insights are gained for the practitioner by running a sensitivity analysis on the optimal inventory plan against the system input parameters. The results suggest that the practitioner can take advantage of a reduced acquisition price by making a larger number of purchases under the order-based rebate program, greatly reducing its cost. |
| first_indexed | 2024-03-12T01:21:29Z |
| format | Article |
| id | doaj.art-682feb8f7b5b4de0952eaeeb90ba4682 |
| institution | Directory Open Access Journal |
| issn | 1018-3647 |
| language | English |
| last_indexed | 2024-03-12T01:21:29Z |
| publishDate | 2023-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of King Saud University: Science |
| spelling | doaj.art-682feb8f7b5b4de0952eaeeb90ba46822023-09-13T04:24:47ZengElsevierJournal of King Saud University: Science1018-36472023-10-01357102840Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in BangladeshMd. Rukonuzzaman0Md. Al-Amin Khan1Aminur Rahman Khan2Ali AlArjani3Md. Sharif Uddin4El-Awady Attia5Department of Mathematics, Jahangirnagar University, Dhaka 1342, Bangladesh; Department of Mathematics and Statistics, Bangladesh University of Textiles, Dhaka 1208, BangladeshDepartment of Mathematics, Jahangirnagar University, Dhaka 1342, Bangladesh; Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P. 64849 Monterrey, Nuevo León, MexicoDepartment of Mathematics, Jahangirnagar University, Dhaka 1342, BangladeshDepartment of Industrial Engineering, Prince Sattam bin Abdulaziz University, Al Kharj 11942, Saudi ArabiaDepartment of Industrial Engineering, Prince Sattam bin Abdulaziz University, Al Kharj 11942, Saudi Arabia; Corresponding author at: Department of Industrial Engineering, Prince Sattam bin Abdulaziz University, Al Kharj 11942, Saudi Arabia.Department of Industrial Engineering, Prince Sattam bin Abdulaziz University, Al Kharj 11942, Saudi Arabia; Mechanical Engineering Department, Faculty of Engineering (Shoubra), Benha University, Cairo, EgyptThis work studies an inventory planning problem for a practitioner selling a non-immediate perishable item after purchasing it from a supplier within a quantity-based discount frame and assesses the impact of the discount frame on the practitioner’s costs. Due to perishability, consumption behavior is directly interconnected with the storage time of the items. The foremost objective of this work is to provide, for the first time, proper inventory planning to minimize the practitioner’s total cost under a quantity-based discount frame when demand changes with the product’s storage time. To make this inventory planning problem more realistic, both zero-ending and stock-out situations are investigated. Under both scenarios, the optimal inventory plan for the practitioner is examined analytically, and then, integrating the analytical results, two solution algorithms are presented under the quantity-based discount frame. In order to verify the investigated inventory problem and scrutinize the efficiency of the algorithms as well, a real example of a mango business is inspected. Several insights are gained for the practitioner by running a sensitivity analysis on the optimal inventory plan against the system input parameters. The results suggest that the practitioner can take advantage of a reduced acquisition price by making a larger number of purchases under the order-based rebate program, greatly reducing its cost.http://www.sciencedirect.com/science/article/pii/S1018364723003026Quantity-based discountDeteriorationTime-dependent demandPartial backordering |
| spellingShingle | Md. Rukonuzzaman Md. Al-Amin Khan Aminur Rahman Khan Ali AlArjani Md. Sharif Uddin El-Awady Attia Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh Journal of King Saud University: Science Quantity-based discount Deterioration Time-dependent demand Partial backordering |
| title | Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh |
| title_full | Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh |
| title_fullStr | Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh |
| title_full_unstemmed | Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh |
| title_short | Effects of a quantity-based discount frame in inventory planning under time-dependent demand: A case study of mango businesses in Bangladesh |
| title_sort | effects of a quantity based discount frame in inventory planning under time dependent demand a case study of mango businesses in bangladesh |
| topic | Quantity-based discount Deterioration Time-dependent demand Partial backordering |
| url | http://www.sciencedirect.com/science/article/pii/S1018364723003026 |
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