IDEAS home Printed from https://ideas.repec.org/a/taf/tsysxx/v46y2015i10p1762-1773.html
   My bibliography  Save this article

Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation

Author

Listed:
  • M. Palanivel
  • R. Uthayakumar

Abstract

This paper deals with an economic order quantity (EOQ) model for non-instantaneous deteriorating items with price and advertisement dependent demand pattern under the effect of inflation and time value of money over a finite planning horizon. In this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This paper aids the retailer in minimising the total inventory cost by finding the optimal interval and the optimal order quantity. An algorithm is designed to find the optimum solution of the proposed model. Numerical examples are given to demonstrate the results. Also, the effect of changes in the different parameters on the optimal total cost is graphically presented and the implications are discussed in detail.

Suggested Citation

  • M. Palanivel & R. Uthayakumar, 2015. "Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(10), pages 1762-1773, July.
    • Handle: RePEc:taf:tsysxx:v:46:y:2015:i:10:p:1762-1773
    DOI: 10.1080/00207721.2013.835001
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207721.2013.835001
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207721.2013.835001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ray, J. & Chaudhuri, K. S., 1997. "An EOQ model with stock-dependent demand, shortage, inflation and time discounting," International Journal of Production Economics, Elsevier, vol. 53(2), pages 171-180, November.
    2. Liao, Jui-Jung, 2008. "An EOQ model with noninstantaneous receipt and exponentially deteriorating items under two-level trade credit," International Journal of Production Economics, Elsevier, vol. 113(2), pages 852-861, June.
    3. Hariga, Moncer A., 1995. "Effects of inflation and time-value of money on an inventory model with time-dependent demand rate and shortages," European Journal of Operational Research, Elsevier, vol. 81(3), pages 512-520, March.
    4. Wu, Kun-Shan & Ouyang, Liang-Yuh & Yang, Chih-Te, 2006. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging," International Journal of Production Economics, Elsevier, vol. 101(2), pages 369-384, June.
    5. Deane, Jason & Agarwal, Anurag, 2012. "Scheduling online advertisements to maximize revenue under variable display frequency," Omega, Elsevier, vol. 40(5), pages 562-570.
    6. 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.
    7. Sarkar, Biswajit & Sarkar, Sumon, 2013. "An improved inventory model with partial backlogging, time varying deterioration and stock-dependent demand," Economic Modelling, Elsevier, vol. 30(C), pages 924-932.
    8. Datta, T. K. & Pal, A. K., 1991. "Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages," European Journal of Operational Research, Elsevier, vol. 52(3), pages 326-333, June.
    9. Taleizadeh, Ata Allah & Pentico, David W. & Saeed Jabalameli, Mohammad & Aryanezhad, Mirbahador, 2013. "An EOQ model with partial delayed payment and partial backordering," Omega, Elsevier, vol. 41(2), pages 354-368.
    10. Sarker, Bhaba R. & Pan, Haixu, 1994. "Effects of inflation and the time value of money on order quantity and allowable shortage," International Journal of Production Economics, Elsevier, vol. 34(1), pages 65-72, February.
    11. Monami Roy & Shib Sana & Kripasindhu Chaudhuri, 2011. "An economic order quantity model of imperfect quality items with partial backlogging," International Journal of Systems Science, Taylor & Francis Journals, vol. 42(8), pages 1409-1419.
    12. Dye, Chung-Yuan & Ouyang, Liang-Yuh & Hsieh, Tsu-Pang, 2007. "Deterministic inventory model for deteriorating items with capacity constraint and time-proportional backlogging rate," European Journal of Operational Research, Elsevier, vol. 178(3), pages 789-807, May.
    13. Dye, Chung-Yuan, 2013. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model," Omega, Elsevier, vol. 41(5), pages 872-880.
    14. Taleizadeh, Ata Allah & Pentico, David W., 2013. "An economic order quantity model with a known price increase and partial backordering," European Journal of Operational Research, Elsevier, vol. 228(3), pages 516-525.
    15. Maihami, Reza & Nakhai Kamalabadi, Isa, 2012. "Joint pricing and inventory control for non-instantaneous deteriorating items with partial backlogging and time and price dependent demand," International Journal of Production Economics, Elsevier, vol. 136(1), pages 116-122.
    16. Chang, Chun-Tao & Teng, Jinn-Tsair & Goyal, Suresh Kumar, 2010. "Optimal replenishment policies for non-instantaneous deteriorating items with stock-dependent demand," International Journal of Production Economics, Elsevier, vol. 123(1), pages 62-68, January.
    17. R. Begum & R.R. Sahoo & S.K. Sahu, 2012. "A replenishment policy for items with price-dependent demand, time-proportional deterioration and no shortages," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(5), pages 903-910.
    18. Yang Tan & Michael Weng, 2013. "A discrete-in-time deteriorating inventory model with time-varying demand, variable deterioration rate and waiting-time-dependent partial backlogging," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(8), pages 1483-1493.
    19. Shah, Nita H & Soni, Hardik N & Patel, Kamlesh A, 2013. "Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates," Omega, Elsevier, vol. 41(2), pages 421-430.
    20. A K Pal & A K Bhunia & R N Mukherjee, 2005. "A marketing-oriented inventory model with three-component demand rate dependent on displayed stock level (DSL)," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 113-118, January.
    21. Hui-Ling Yang, 2011. "A partial backlogging production-inventory lot-size model for deteriorating items with time-varying production and demand rate over a finite time horizon," International Journal of Systems Science, Taylor & Francis Journals, vol. 42(8), pages 1397-1407.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.
    2. Muhammad Waqas Iqbal & Muhammad Babar Ramzan & Asif Iqbal Malik, 2022. "Food Preservation within Multi-Echelon Supply Chain Considering Single Setup and Multi-Deliveries of Unequal Lot Size," Sustainability, MDPI, vol. 14(11), pages 1-30, June.
    3. Ajoy Hatibaruah & Sumit Saha, 2023. "An inventory model for two-parameter Weibull distributed ameliorating and deteriorating items with stock and advertisement frequency dependent demand under trade credit and preservation technology," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 951-1002, June.
    4. Reza Maihami & Behrooz Karimi & Seyyed Mohammad Taghi Fatemi Ghomi, 2017. "Effect of two-echelon trade credit on pricing-inventory policy of non-instantaneous deteriorating products with probabilistic demand and deterioration functions," Annals of Operations Research, Springer, vol. 257(1), pages 237-273, October.
    5. Nita H. Shah & Chetansinh R. Vaghela, 2017. "Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand," OPSEARCH, Springer;Operational Research Society of India, vol. 54(1), pages 168-180, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    2. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    3. 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.
    4. Reza Maihami & Behrooz Karimi & Seyyed Mohammad Taghi Fatemi Ghomi, 2017. "Effect of two-echelon trade credit on pricing-inventory policy of non-instantaneous deteriorating products with probabilistic demand and deterioration functions," Annals of Operations Research, Springer, vol. 257(1), pages 237-273, October.
    5. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    6. Li, Guiping & He, Xiuli & Zhou, Jing & Wu, Hao, 2019. "Pricing, replenishment and preservation technology investment decisions for non-instantaneous deteriorating items," Omega, Elsevier, vol. 84(C), pages 114-126.
    7. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    8. R. Sundara rajan & R. Uthayakumar, 2017. "Comprehensive solution procedure for optimizing replenishment policies of instantaneous deteriorating items with stock-dependent demand under partial trade credit linked to order quantity," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1343-1373, November.
    9. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2015. "A production inventory model for deteriorating item with ramp type demand allowing inflation and shortages under fuzziness," Economic Modelling, Elsevier, vol. 46(C), pages 334-345.
    10. Qin, Yiyan & Wang, Jianjun & Wei, Caimin, 2014. "Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously," International Journal of Production Economics, Elsevier, vol. 152(C), pages 42-48.
    11. 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.
    12. Zhang, Jianxiong & Wang, Yu & Lu, Lihao & Tang, Wansheng, 2015. "Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 136-145.
    13. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Khanna, Aditi & Jaggi, Chandra K., 2016. "Impact of trade credit and inflation on retailer's ordering policies for non-instantaneous deteriorating items in a two-warehouse environment," International Journal of Production Economics, Elsevier, vol. 176(C), pages 154-169.
    14. Dye, Chung-Yuan, 2013. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model," Omega, Elsevier, vol. 41(5), pages 872-880.
    15. Soni, Hardik N, 2013. "Optimal replenishment policies for non-instantaneous deteriorating items with price and stock sensitive demand under permissible delay in payment," International Journal of Production Economics, Elsevier, vol. 146(1), pages 259-268.
    16. Chandan Mahato & Gour Chandra Mahata, 2023. "Optimal Pricing and Inventory Decisions for Perishable Products with Multivariate Demand Function Under Trade Credit," SN Operations Research Forum, Springer, vol. 4(2), pages 1-26, June.
    17. Guchhait, Partha & Kumar Maiti, Manas & Maiti, Manoranjan, 2013. "Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 144(1), pages 180-188.
    18. Hou, Kuo-Lung, 2006. "An inventory model for deteriorating items with stock-dependent consumption rate and shortages under inflation and time discounting," European Journal of Operational Research, Elsevier, vol. 168(2), pages 463-474, January.
    19. Hardik N. Soni & Dipali N. Suthar, 2020. "Optimal pricing and replenishment policy for non-instantaneous deteriorating items with varying rate of demand and partial backlogging," OPSEARCH, Springer;Operational Research Society of India, vol. 57(3), pages 986-1021, September.
    20. Manish Shukla & Sanjay Jharkharia, 2014. "An inventory model for continuously deteriorating agri-fresh produce: an artificial immune system-based solution approach," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 9(1/2), pages 110-135.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tsysxx:v:46:y:2015:i:10:p:1762-1773. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSYS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.