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An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment: revisited

Author

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  • Priyamvada

    (University of Delhi)

  • Rini

    (University of Delhi)

  • Aditi Khanna

    (University of Delhi)

  • Chandra K. Jaggi

    (University of Delhi)

Abstract

Mishra et al. (Ann Oper Res 254(1–2):165–190, 2017) proposed an EOQ model for a deteriorating seasonal product where demand was considered as a function of stock and selling price. Their model practiced preservation technology in order to control the deterioration rate. Further, shortages were allowed and two different scenarios, complete backordering and partial backordering were dealt with in individual cases. The model jointly optimized selling price, ordering frequency and investment in preservation technology under a profit maximization scenario. The problem they investigated depicts a practical real-life scenario, but the mathematical modelling is incorrect. Thus, the numerical results, special cases and managerial insights are debatable. Realizing the significant contribution of the model in question to the existing literature, we revisit the model to provide a corrected comprehensive version. The present model’s optimality has been proved mathematically. Further, the model has been validated using numerical analysis. Sensitivity analysis has been performed to test the robustness of the model.

Suggested Citation

  • Priyamvada & Rini & Aditi Khanna & Chandra K. Jaggi, 2021. "An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment: revisited," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 181-202, March.
    • Handle: RePEc:spr:opsear:v:58:y:2021:i:1:d:10.1007_s12597-020-00474-5
    DOI: 10.1007/s12597-020-00474-5
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    References listed on IDEAS

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    1. Dye, Chung-Yuan & Hsieh, Tsu-Pang, 2012. "An optimal replenishment policy for deteriorating items with effective investment in preservation technology," European Journal of Operational Research, Elsevier, vol. 218(1), pages 106-112.
    2. Umakanta Mishra & Leopoldo Eduardo Cárdenas-Barrón & Sunil Tiwari & Ali Akbar Shaikh & Gerardo Treviño-Garza, 2017. "An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment," Annals of Operations Research, Springer, vol. 254(1), pages 165-190, July.
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    Cited by:

    1. Cynthia Griselle De-la-Cruz-Márquez & Leopoldo Eduardo Cárdenas-Barrón & J. David Porter & Imelda de Jesús Loera-Hernández & Neale R. Smith & Armando Céspedes-Mota & Gerardo Treviño-Garza & Rafael Ern, 2023. "An Inventory Model for Growing Items When the Demand Is Price Sensitive with Imperfect Quality, Inspection Errors, Carbon Emissions, and Planned Backorders," Mathematics, MDPI, vol. 11(21), pages 1-45, October.
    2. Jiaguo Liu & Huida Zhao & Yibing Lyu & Xiaohang Yue, 2023. "The provision strategy of blockchain service under the supply chain with downstream competition," Annals of Operations Research, Springer, vol. 327(1), pages 375-400, August.
    3. Mrudul Y. Jani & Heta A. Patel & Amrita Bhadoriya & Urmila Chaudhari & Mohamed Abbas & Malak S. Alqahtani, 2023. "Deterioration Control Decision Support System for the Retailer during Availability of Trade Credit and Shortages," Mathematics, MDPI, vol. 11(3), pages 1-27, January.
    4. Md Sadikur Rahman & Subhajit Das & Amalesh Kumar Manna & Ali Akbar Shaikh & Asoke Kumar Bhunia & Leopoldo Eduardo Cárdenas-Barrón & Gerardo Treviño-Garza & Armando Céspedes-Mota, 2021. "A Mathematical Model of the Production Inventory Problem for Mixing Liquid Considering Preservation Facility," Mathematics, MDPI, vol. 9(24), pages 1-19, December.
    5. Amisha Patel & Isha Talati & Ankit D. Oza & Dumitru Doru Burduhos-Nergis & Diana Petronela Burduhos-Nergis, 2022. "A Profit Maximization Inventory Model: Stock-Linked Demand Considering Salvage Value with Tolerable Deferred Payments," Mathematics, MDPI, vol. 10(20), pages 1-16, October.

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