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An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns

Author

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  • Maryam Ghoreishi
  • Gerhard-Wilhelm Weber
  • Abolfazl Mirzazadeh

Abstract

This paper develops an economic ordering policy model for non-instantaneous deteriorating items with selling price- and inflation-induced demand under the effect of inflation, permissible delay in payments and customer returns. Shortages are allowed and partially backlogged. The customer returns are assumed to increase with both the quantity sold and the product price. The main objective is to determine the optimal selling price, the optimal length of time in which there is no inventory shortage, and the optimal replenishment cycle simultaneously, to minimize the present value of the total profit. An efficient algorithm is presented to find the optimal solution of the developed model. Finally, a numerical example is extracted to solve the presented inventory model using the proposed algorithm. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Maryam Ghoreishi & Gerhard-Wilhelm Weber & Abolfazl Mirzazadeh, 2015. "An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns," Annals of Operations Research, Springer, vol. 226(1), pages 221-238, March.
    • Handle: RePEc:spr:annopr:v:226:y:2015:i:1:p:221-238:10.1007/s10479-014-1739-7
    DOI: 10.1007/s10479-014-1739-7
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    3. Mohsen Lashgari & Ata Allah Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    4. Dharamender Singh & Anurag Jayswal & Majed G. Alharbi & Ali Akbar Shaikh, 2021. "An Investigation of a Supply Chain Model for Co-Ordination of Finished Products and Raw Materials in a Production System under Different Situations," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    5. Magfura Pervin & Sankar Kumar Roy & Gerhard-Wilhelm Weber, 2018. "Analysis of inventory control model with shortage under time-dependent demand and time-varying holding cost including stochastic deterioration," Annals of Operations Research, Springer, vol. 260(1), pages 437-460, January.
    6. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    7. Wen Zhang & Weizhe Yang, 2021. "Optimal pre-order strategy with delay in payments," Annals of Operations Research, Springer, vol. 305(1), pages 347-374, October.
    8. Jiang Wu & Jinn-Tsair Teng & Konstantina Skouri, 2018. "Optimal inventory policies for deteriorating items with trapezoidal-type demand patterns and maximum lifetimes under upstream and downstream trade credits," Annals of Operations Research, Springer, vol. 264(1), pages 459-476, May.
    9. Mohsen Lashgari & Ata Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    10. Armin Jabbarzadeh & Leyla Aliabadi & Reza Yazdanparast, 2021. "Optimal payment time and replenishment decisions for retailer’s inventory system under trade credit and carbon emission constraints," Operational Research, Springer, vol. 21(1), pages 589-620, March.
    11. Luis A. San-José & Joaquín Sicilia & Manuel González-De-la-Rosa & Jaime Febles-Acosta, 2020. "Best pricing and optimal policy for an inventory system under time-and-price-dependent demand and backordering," Annals of Operations Research, Springer, vol. 286(1), pages 351-369, March.
    12. Al-Amin Khan, Md. & Shaikh, Ali Akbar & Konstantaras, Ioannis & Bhunia, Asoke Kumar & Cárdenas-Barrón, Leopoldo Eduardo, 2020. "Inventory models for perishable items with advanced payment, linearly time-dependent holding cost and demand dependent on advertisement and selling price," International Journal of Production Economics, Elsevier, vol. 230(C).
    13. Ata Allah Taleizadeh & Sara Tavassoli & Arijit Bhattacharya, 2020. "Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering," Annals of Operations Research, Springer, vol. 287(1), pages 403-437, April.

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