An integrated deteriorating inventory model with permissible delay in payments and price-sensitive stock-dependent demand
type: Item
instance of: scholarly article
title: An integrated deteriorating inventory model with permissible delay in payments and price-sensitive stock-dependent demand
zbMATH Open document ID: 1260.90013
DOI: 10.1504/IJOR.2011.041801
author: Omprakash K. Gupta
author: Nita H. Shah
author: Amisha R. Patel
published in: International Journal of Operational Research
publication date: 2012-11-16T00:00:00Z
review text: Summary: An integrated inventory system supply chain comprising of a single vendor and a single buyer is formulated to maximise the total profit of the system as whole. The optimal solution for the system, however, may not be agreeable to both parties. To ensure mutual benefit, a negotiation factor is incorporated to share profit between the players according to their contributions. The effect of permissible delay in payments is studied for sharing profit in the integrated system. The units in inventory are subject to constant deterioration. The demand is stock dependent and production rate is proportional to the demand rate. A numerical example is provided to support the development of the model. The sensitivity analysis of model parameters is carried out, it is also established that the percentage of extra total profit is higher when the players of the supply chain opt for an integrated strategy.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90B10
zbMATH DE Number: 6108298
zbMATH Keywords: integrated systems
zbMATH Keywords: permissible delay in payment
zbMATH Keywords: deterioration rate
zbMATH Keywords: finite replenishment rate
zbMATH Keywords: stock-price sensitive demand
MaRDI profile type: Publication
description: scientific article; zbMATH DE number 6108298