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A particle swarm optimization for solving lot-sizing problem with fluctuating demand and preservation technology cost under trade credit

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  • Chung-Yuan Dye
  • Tsu-Pang Hsieh

Abstract

In this paper, we consider the effect of preservation technology cost investing on preservation equipment for reducing deterioration rate under two-level trade credit. The preservation technology cost is allowed for periodical upward or downward adjustments due to the time varying demand and the strategy of trade credit within the planning horizon. We establish a deterministic economic order quantity model for a retailer to determine his/her optimal preservation technology cost per replenishment cycle, the trade credit policies, the replenishment number and replenishment schedule that will maximize the present value of total profit. A particle swarm optimization with constriction factor is coded and used to solve the mixed-integer nonlinear programming problem by employing the properties derived from this paper. Some numerical examples are used to illustrate the features of the proposed model. Copyright Springer Science+Business Media, LLC. 2013

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  • Chung-Yuan Dye & Tsu-Pang Hsieh, 2013. "A particle swarm optimization for solving lot-sizing problem with fluctuating demand and preservation technology cost under trade credit," Journal of Global Optimization, Springer, vol. 55(3), pages 655-679, March.
    • Handle: RePEc:spr:jglopt:v:55:y:2013:i:3:p:655-679
    DOI: 10.1007/s10898-012-9950-z
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    References listed on IDEAS

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    1. J-T Teng, 2002. "On the economic order quantity under conditions of permissible delay in payments," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(8), pages 915-918, August.
    2. Hsu, P.H. & Wee, H.M. & Teng, H.M., 2010. "Preservation technology investment for deteriorating inventory," International Journal of Production Economics, Elsevier, vol. 124(2), pages 388-394, April.
    3. Chih-Te Yang, 2010. "The optimal order and payment policies for deteriorating items in discount cash flows analysis under the alternatives of conditionally permissible delay in payments and cash discount," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 18(2), pages 429-443, December.
    4. Yu-Chung Tsao, 2010. "Two-phase pricing and inventory management for deteriorating and fashion goods under trade credit," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 72(1), pages 107-127, August.
    5. Yang, P.C. & Wee, H.M. & Liu, B.S. & Fong, O.K., 2011. "Mitigating Hi-tech products risks due to rapid technological innovation," Omega, Elsevier, vol. 39(4), pages 456-463, August.
    6. Ya Gao & Guangquan Zhang & Jie Lu & Hui-Ming Wee, 2011. "Particle swarm optimization for bi-level pricing problems in supply chains," Journal of Global Optimization, Springer, vol. 51(2), pages 245-254, October.
    7. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
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    Cited by:

    1. Ngaam J. Cheung & Xue-Ming Ding & Hong-Bin Shen, 2016. "A Non-homogeneous Firefly Algorithm and Its Convergence Analysis," Journal of Optimization Theory and Applications, Springer, vol. 170(2), pages 616-628, August.
    2. Sudarshan Bardhan & Haimanti Pal & Bibhas Chandra Giri, 2019. "Optimal replenishment policy and preservation technology investment for a non-instantaneous deteriorating item with stock-dependent demand," Operational Research, Springer, vol. 19(2), pages 347-368, June.
    3. YuJan Shen & KuanFu Shen & ChihTe Yang, 2019. "A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    4. Hongjun Peng & Tao Pang & Fuliang Cao & Juan Zhao, 2018. "A Mutual Subsidy Mechanism for a Seasonal Product Supply Chain Channel Under Double Price Regulation," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-26, December.
    5. Li, Ruihai & Chan, Ya-Lan & Chang, Chun-Tao & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Pricing and lot-sizing policies for perishable products with advance-cash-credit payments by a discounted cash-flow analysis," International Journal of Production Economics, Elsevier, vol. 193(C), pages 578-589.
    6. Yong He & Hongfu Huang & Dong Li, 2020. "Inventory and pricing decisions for a dual-channel supply chain with deteriorating products," Operational Research, Springer, vol. 20(3), pages 1461-1503, September.
    7. Chaitanyakumar N. Rapolu & Deepa H. Kandpal, 2020. "Joint pricing, advertisement, preservation technology investment and inventory policies for non-instantaneous deteriorating items under trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 274-300, June.

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