Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution
In this paper, impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution has been studied. The phenomenon of substitution is considered in a stock-out situation and when items become out of stock due...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidad Politécnica de Valencia
2020-12-01
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| Series: | WPOM : Working Papers on Operations Management |
| Subjects: | |
| Online Access: | https://polipapers.upv.es/index.php/WPOM/article/view/13730 |
| _version_ | 1819121987462627328 |
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| author | Rajesh Kumar Mishra Vinod Kumar Mishra |
| author_facet | Rajesh Kumar Mishra Vinod Kumar Mishra |
| author_sort | Rajesh Kumar Mishra |
| collection | DOAJ |
| description | In this paper, impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution has been studied. The phenomenon of substitution is considered in a stock-out situation and when items become out of stock due to demand then unfulfilled demand is asymmetrically substituted by another item. We formulate the inventory model mathematically and derived optimal ordering quantities, optimal total costs and extreme value of substitution rate for all possible cases. Moreover, pseudo-convexity of the total inventory cost function is obtained and the solution procedure is provided. Numerical example and sensitivity analysis have been presented to validate the effectiveness of the inventory model and substantial improvement in total optimal inventory cost with substitution with respect to optimal total inventory cost without substitution is seen. |
| first_indexed | 2024-12-22T06:45:17Z |
| format | Article |
| id | doaj.art-b3495723f3a648b7afdb92656dbe2d4f |
| institution | Directory Open Access Journal |
| issn | 1989-9068 |
| language | English |
| last_indexed | 2024-12-22T06:45:17Z |
| publishDate | 2020-12-01 |
| publisher | Universidad Politécnica de Valencia |
| record_format | Article |
| series | WPOM : Working Papers on Operations Management |
| spelling | doaj.art-b3495723f3a648b7afdb92656dbe2d4f2022-12-21T18:35:17ZengUniversidad Politécnica de ValenciaWPOM : Working Papers on Operations Management1989-90682020-12-0111212610.4995/wpom.v11i2.137308289Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitutionRajesh Kumar Mishra0Vinod Kumar Mishra1Madan Mohan Malaviya University of TechnologyMadan Mohan Malaviya University of TechnologyIn this paper, impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution has been studied. The phenomenon of substitution is considered in a stock-out situation and when items become out of stock due to demand then unfulfilled demand is asymmetrically substituted by another item. We formulate the inventory model mathematically and derived optimal ordering quantities, optimal total costs and extreme value of substitution rate for all possible cases. Moreover, pseudo-convexity of the total inventory cost function is obtained and the solution procedure is provided. Numerical example and sensitivity analysis have been presented to validate the effectiveness of the inventory model and substantial improvement in total optimal inventory cost with substitution with respect to optimal total inventory cost without substitution is seen.https://polipapers.upv.es/index.php/WPOM/article/view/13730inventory decisionscost of substitutionjoint replenishmentsubstitutable itemscomplementary itemsasymmetrical substitution |
| spellingShingle | Rajesh Kumar Mishra Vinod Kumar Mishra Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution WPOM : Working Papers on Operations Management inventory decisions cost of substitution joint replenishment substitutable items complementary items asymmetrical substitution |
| title | Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| title_full | Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| title_fullStr | Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| title_full_unstemmed | Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| title_short | Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| title_sort | impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution |
| topic | inventory decisions cost of substitution joint replenishment substitutable items complementary items asymmetrical substitution |
| url | https://polipapers.upv.es/index.php/WPOM/article/view/13730 |
| work_keys_str_mv | AT rajeshkumarmishra impactofcostofsubstitutionandjointreplenishmentoninventorydecisionsforjointsubstitutableandcomplementaryitemsunderasymmetricalsubstitution AT vinodkumarmishra impactofcostofsubstitutionandjointreplenishmentoninventorydecisionsforjointsubstitutableandcomplementaryitemsunderasymmetricalsubstitution |