Optimal procurement decisions for food products in a retailing system with variety dependent demand
by Asghar Hemmati; Behrouz Afshar-Nadjafi; Esmaeil Mehdizadeh
International Journal of Procurement Management (IJPM), Vol. 15, No. 5, 2022

Abstract: In the food industry, acquiring a lion's share of the market is a key factor in a company's success. Offering similar substitutes instead of the requested stocked-out products has been an alternative to keep customers. In this paper, an economic ordering model with substitutable food products is investigated. Each product has its own initial constant demand which will be increased when inventory of the other products would be depleted. Similarity measures and quality of the principal request and its substitutes depends on any typical customer with its own information. Time intervals are considered as decision variables and the conditions which in closed form expression of the optimal solution are achievable are derived. Furthermore, the impact of the models' parameters on the optimal solution was investigated. It was clarified that a marginal increase in the unit profit of each food product has a positive impact on the total profit and the order quantity.

Online publication date: Mon, 26-Sep-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Procurement Management (IJPM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com