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A Discount Technique-Based Inventory Management on Electronics Products Supply Chain

Author

Listed:
  • Md. Sujan Miah

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Md. Mominul Islam

    (Department of Physics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Mahmudul Hasan

    (Department of Mathematics, Jahangirnagar University, Saver, Dhaka 1342, Bangladesh)

  • Abu Hashan Md. Mashud

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Dipa Roy

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Shib Sankar Sana

    (Kishore Bharati Bhagini Nivedita College, Ramkrishna Sarani, Behala, Kolkata 700060, India)

Abstract

Inventory management is becoming very challenging for the retailer over the years due to the uncertainty in the demand and supply of products in financial risk and management systems. In a competitive market, running a business smoothly in a highly suitable place is day by day becoming tough due to the very high fare for those locations. Thus, limited storage is available in those elite places with high fares, and a retailer takes a financial risk by stocking huge amounts of products in those limited storage stores. Thus, the appropriate financial analysis is required to find out optimal strategies (financial decisions) to sustain a business organization of electronic products in a global competitive business environment. As a result, when bulk purchases of electronic products, for example, T.V., Fridges, Oven, etc., have been made by the retailer, he faces two problems. The first one is related to the limited storage; as a result, he has to pay a considerable amount to hold the products for a long time. The second one is shortages of liquid money as he invested massive amounts. To avoid these problems, he offers some price discounts on the market’s original selling price to sell the products quickly for a limited time prior to recovering his capital investment. For that reason, a price, time, and stock dependent realistic demand function have been considered in this proposed paper with two modes of discount policy. The proposed model has been solved by a classical optimization technique from calculus and provides some insights for the retailer. Some numerical examples and graphs are provided to illustrate the model.

Suggested Citation

  • Md. Sujan Miah & Md. Mominul Islam & Mahmudul Hasan & Abu Hashan Md. Mashud & Dipa Roy & Shib Sankar Sana, 2021. "A Discount Technique-Based Inventory Management on Electronics Products Supply Chain," JRFM, MDPI, vol. 14(9), pages 1-16, August.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:9:p:398-:d:621213
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    References listed on IDEAS

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    1. Alberto Cambini & Laura Martein, 2009. "Generalized Convexity and Optimization," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-70876-6, December.
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    3. Bhaskar Bhaula & Jayanta Kumar Dash & M. Rajendra Kumar, 2019. "An optimal inventory model for perishable items under successive price discounts with permissible delay in payments," OPSEARCH, Springer;Operational Research Society of India, vol. 56(1), pages 261-281, March.
    4. Datta, T. K. & Paul, K. & Pal, A. K., 1998. "Demand promotion by upgradation under stock-dependent demand situation - a model," International Journal of Production Economics, Elsevier, vol. 55(1), pages 31-38, June.
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