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1.

Optimal ordering policy for an integrated inventory model with stock dependent demand and order linked trade credits for twin ware house system Pages 169-186 Right click to download the paper Download PDF

Authors: Poonam Mishra, Azharuddin Shaikh

DOI: 10.5267/j.uscm.2017.1.004

Keywords: Integrated model, Order-size dependent trade credit period, Capacity constraint, Stock dependent demand and rented warehouse

Abstract:
Many entrepreneurs use different ways to offer credit to enhance long term profit as well as relations with their customers. Order-size dependent credit period is one of them that encourage customers to order large lots to grab more credits in payments. Since display of items play positive role in boosting demand, stock dependent demand is assumed in the proposed model. Ordering large lots can create space issue so the proposed model presents a rented warehouse along with owned one. Rented warehouse is used only when owned warehouse is utilized, completely. Here we propose an integrated inventory model with capacity utilization dependent holding cost to optimize joint profit of supplier and retailer. An algorithm is developed to determine the optimal replenishment policies in order to enhance total profit of supply chain under different ordering schemes. Total joint profit for supplier and retailer is optimized using MATLAB 2015. Numerical examples are presented to illustrate the solution procedure and the results. Sensitivity analysis for some key parameters is carried out to demonstrate the influence of different parameters on over-all profit and cycle time. The proposed model is applicable to fast moving consumer goods (FMCG) and home textile industry.

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Journal: USCM | Year: 2017 | Volume: 5 | Issue: 3 | Views: 477 | Reviews: 0

 

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