International Journal of Inventory Research (10 papers in press)
An optimal policy for an integrated vendor-buyer model with two warehouses under vendor's capacity constraint
by Bibhas C. Giri, Ayan Chakraborty
Abstract: The paper considers an integrated single-vendor single-buyer supply chain model in which the vendor is assumed to be capacity constrained. The vendor can keep the excess units beyond the capacity of its own warehouse(OW) in a rented warehouse (RW) whose holding cost is higher than that of the own warehouse. The vendor delivers the buyer's order quantity in a number of equal shipments. The proposed integrated model is formulated and some of its characteristics are studied analytically. Considering the vendor's capacity as a control variable, the optimal decisions of the model are obtained for a numerical example. Sensitivity analysis is also carried out to measure the impact of key model-parameters on the outcome of the model.
Keywords: Supply chain; vendor-buyer integrated model; rented warehouse; capacity constraint.
On Inventory Control with Reference Prices
by Yigal Gerchak
Abstract: A retailer sets prices, as well as, simultaneously, selects quantities to order from a supplier. We consider a two periods setting where the second period\'s demand depends on the first period\'s (\"reference\") price, as well as on the second period price. We consider a linear-additive demand function as well as a novel iso-elastic multiplicative model.
Keywords: reference price; pricing newsvendor; additive noise; multiplicative noise.
Inventory model for non-instantaneous deteriorating item with random pre-deterioration period
by Manisha Pal, Anwesha Samanta
Abstract: The paper studies an inventory model for non-instantaneous deteriorating item where the deterioration of the item is initiated at a random time point. It is assumed that no shortages are allowed and demand occurs uniformly but at different rates during pre- and post- deterioration periods. The optimum order quantity and reorder intervals are determined so as to minimize the total expected cost per unit length of an inventory cycle. Numerical examples are cited and a sensitivity analysis is carried out to study the effect of model parameters on the optimum policy.
Keywords: Inventory control; periodic review model; non- instantaneous deteriorating item; random pre-deterioration period; deterioration dependent demand rate.
Coordinating replenishment and marketing policies for non-instantaneous deteriorating items with imprecise deterioration free time and general deterioration and holding cost rates
by Amirhosein Patoghi, Mostafa Setak
Abstract: In this paper an inventory system for non-instantaneous deteriorating items with imprecise deterioration free time is developed. We adopt a price and advertisement frequency dependent demand function, and in order to reach a general framework, arbitrary functions of deterioration and holding cost rates are hired. The major objective is to determine the optimal selling price, the optimal replenishment cycle and the optimal frequency of advertisement such that, the total profit is maximized. In order to determine the optimal solution several theoretical results are derived which indicate existence and uniqueness of the optimal solution. Thereafter, based on these theoretical results an iterative solution is developed. Finally, numerical examples are provided to demonstrate solution procedure, then sensitivity analysis is performed, it is shown that optimal policy under uncertain environment and crisp environment are identical and finally some managerial insights are proposed.
Keywords: Inventory; imprecise deterioration free time; arbitrary deterioration and holding cost rates; price and advertisement dependent demand.
Inventory model for non-instantaneous deterioration and price-sensitive trended demand with learning effects
by Nita Shah, Monika Naik
Abstract: This paper addresses a working model for non-instantaneous deteriorating items including the learning effect on various costs and the preservation technology investment to reduce the deterioration rate. The system includes time and price sensitive demand. The objective is to maximize the total profit per unit time by finding optimal joint selling price, replenishment cycle time, the preservation technology investment per unit time, ordering quantity and the shortage period. A numerical example is presented to validate the policy investigated in this paper. Further, the sensitivity analysis about the key parameters is conducted to obtain the managerial insights.
Keywords: Non-instantaneous deterioration of items; Time-price dependent demand; Learning effect; Preservation Technology.
Inventory Models with Stock-Dependent Demand: A Comprehensive Review and Its Linkage with Waste Management
by Neeta Sharma, Prem Vrat
Abstract: This paper presents a review of the advances in stock-dependent demand inventory literature for the last three decades. The available relevant models have been classified into a number of categories and their principal features have been discussed in brief to bring out more pertinent information regarding model development. An extensive analysis of the literature is presented to identify the future research scope and the factors which are responsible for the poor applicability of these models. Moreover, a very important and missing link between the stock-dependent demand phenomenon and waste has been recognized as a potential field for exploration in materials management as well as in our day-to-day consumption pattern. It has been emphasized that many socio-economic problems which have a root cause in wasteful resource consumption can be solved by incorporating the phenomenon in our waste management practices.
Keywords: Inventory models; stock-dependent demand; stock-induced consumption; stock-induced waste; waste management.
Perishable inventory model with Markovian arrival process (MAP), retrial demands and multiple working vacations
by Vijaya Laxmi Pikkala, Soujanya M.L.
Abstract: In this paper, we consider a continuous review perishable inventory systemrnin which two types of customers, positive and negative, arrive according torna Markovian arrival process. The life time of an item and the lead time ofrnreorder are exponentially distributed. Demands that occur during stock outrnperiod or busy period either enter an orbit of size $N$ or are lost. Thernorbital demands compete their service with an exponential rate dependingrnon the number of demands in the orbit. The waiting demands in the orbit mayrnrenege the system after an exponentially distributed amount of time. The serverrntakes multiple working vacations at zero inventory. The steady staternjoint probability distribution of the number of customers in the orbit andrnthe inventory level is obtained. Various performance measures and cost analysisrnare shown with numerical results.
Keywords: Markovian arrival process; (s,S) policy; Replenishment time; Negative customers;rnMultiple working vacations; Matrix analytic method; Perishable items; Retrial demands.
Research on optimal production decision for "company + farmer" based on farmland leasing model
by Jianjun Yu, Xiaoyong Huang, Kunye Lyu
Abstract: To study the problem of the optimal production decision of risk-neutral company and risk-averse farmer under the "company + farmer" rental model, this paper is on the basis of Based on the traditional newsboy model from the perspective of supply chain coordination. By introducing leasing model, the optimal production decision of supply chain is analyzed in case of considering expected rents. For the case of considering the expected rent, the risk-averse farmer's production decision-making problem is discussed by introducing conditional value-at-risk (CVaR) and the conclusion is drawn that when facing the lower labor costs of agricultural products, the farmer can effectively avoid risks by using rental model under the "company + peasant household".
Keywords: company + farmer；farmland leasing mode；expect rents；CVaR.
Special Issue on: Joint Marketing-Inventory Decisions Research
The optimal pricing, quantity decision, number of product of online designer with scarcity effect and product variety benefit
by Chun-Hung Chiu, Zhanwen Peng
Abstract: Online sales platform is a new opportunity for fashion designers to promote their own designs. In this article, we investigate the fashion designers optimal pricing and production decisions, and product category management by incorporating the scarcity effect and the product variety benefit. We find that the popularity of the designer is very crucial in this problem. Specifically, a more popular designer can increase the price and product quantity to obtain more profit with less number of product design, while an un-famous designer can benefit from the high demand variability. Moreover, the numerically analysis shows that the un-famous designer can benefit from increasing product variety, but it is not true for the famous designer.
Keywords: category management; designer sales platform; scarcity effect; product variety benefit; pricing and production strategy.
Supply Chain Coordination with Inventory and Pricing Decisions
by Hau-Ling Chan
Abstract: In this study, we conduct a comprehensive literature review on the inventory and pricing decisions under the supply chain coordination. To be specific, we review the publications from 1997 to 2017 and divide the papers into six areas for discussion; they are: decisions under integrated supply chain, supply contract, capital-constrained, competition, risk aversion, and information asymmetry. After reviewing the literature, we identify three major future research directions. First, we propose to explore different real world industrial supply contracts and the forms of demand function. Second, limited studies consider risk aversion behavior of the supply chain members, hence, we also propose to examine the inventory and pricing decisions under supply chain coordination with risk-averse retailer and risk-averse supplier, respectively. Finally, it is also interesting to investigate different types of information asymmetry.
Keywords: Supply chain coordination; inventory and pricing decisions; review.