An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment

Bikash Koli Dey, Biswajit Sarkar, Mitali Sarkar, Sarla Pareek

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer's demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the "in-control" to "out-of-control" states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model.

Original languageEnglish
Pages (from-to)39-57
Number of pages19
JournalRAIRO - Operations Research
Volume53
Issue number1
DOIs
Publication statusPublished - 2019 Jan 1

Fingerprint

Setup Cost
Safety factor
Inventory Model
Integrated Model
Cost reduction
Sales
Safety
Dependent
Poisson distribution
Profit
Customers
Numerical Examples
Numerical Results
Profitability
Demand
Integrated inventory model
Integrated model
Lead time
Price-dependent demand
Factors

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • Computer Science Applications
  • Management Science and Operations Research

Cite this

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An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment. / Dey, Bikash Koli; Sarkar, Biswajit; Sarkar, Mitali; Pareek, Sarla.

In: RAIRO - Operations Research, Vol. 53, No. 1, 01.01.2019, p. 39-57.

Research output: Contribution to journalArticle

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