The dynamicity of the technology market and varied consumer tastes make the technology product market highly unpredictable and complex.Besides,due to competition and fast breakthroughs in the technology market,it can ...The dynamicity of the technology market and varied consumer tastes make the technology product market highly unpredictable and complex.Besides,due to competition and fast breakthroughs in the technology market,it can be observed that in recent years,the product life cycle has shortened significantly.It created immense pressure on managers to develop inventory policies corresponding to actual market realities.Economics order quantity(EOQ)models are often used to develop inventory policies.However,due to the variable nature of the demand rate function of technology products,the traditional EOQ models may not be useful for developing replenishment policies for technology products.In addition to the consumer adoption process,inventory managers also face the challenge of imperfect quality products while strategizing business policies.Imperfect quality products can come from flawed transport and storage conditions,or they may come due to the faulty production process.Proper inspection or screening of the lot is important for removing the desired level of defective items before delivery to the customers.In this paper,we propose a new EOQ model for technology items with imperfect quality where the demand rate will follow life-cycle dynamics,and sales are treated as a function of product awareness,utility,and consumer affordability.To confirm the validity of the proposed framework,a numerical analysis is performed under different market conditions.展开更多
The present paper studies a supply chain model with items that are of imperfect quality and with the assumption that end demand is responsive to price and promotion cost.The seller delivers items to the buyer in a lot...The present paper studies a supply chain model with items that are of imperfect quality and with the assumption that end demand is responsive to price and promotion cost.The seller delivers items to the buyer in a lot.After an inspection process,it is observed that few articles produced are not of perfect quality.These defects might be the result of common operations or static maintenance.These defective items are then collected and are sold at a lower/discounted price.In this paper,supply chain models are developed to approve the interaction among the players,in the supply chain channel.This interaction between the players is demonstrated by non-cooperative and cooperative game theoretical approaches.In non-cooperative approach,optimal solutions are attained by game theoretic approaches named as Seller–Stackelberg and Buyer–Stackelberg.In the cooperative approach,a Pareto efficient solution is outlined.In the last,numerical illustrations with sensitivity scrutiny are presented to support the theory of the present paper.展开更多
In this paper, the classical economic order quantity （EOQ） inventory model assumption that all items of a certain product received from a supplier are of perfect quality is relaxed. Another basic assumption that the...In this paper, the classical economic order quantity （EOQ） inventory model assumption that all items of a certain product received from a supplier are of perfect quality is relaxed. Another basic assumption that the payment for the items is made at the beginning of the inventory cycle when they are received is also eased. We consider an inventory situation where items received from the supplier are of two types of quality, perfect and imperfect, and a short deferral in payment is allowed. The split between perfect and imperfect quality items is assumed to follow a known probability distribution. Both qualities of items have continuous demands, and items of imperfect quality are sold at a discount. A mathematical model is developed using the net present value of all cash flows involved in the inventory cycle. A numerical method for obtaining the optimal order quantity is presented, and the impact of the short-term financing is analyzed. An example is presented to validate the equations and illustrate the results.展开更多
基金support provided by the FORE School of Management,New Delhi and BITS Pilani in completing this paper is gratefully acknowledged.
文摘The dynamicity of the technology market and varied consumer tastes make the technology product market highly unpredictable and complex.Besides,due to competition and fast breakthroughs in the technology market,it can be observed that in recent years,the product life cycle has shortened significantly.It created immense pressure on managers to develop inventory policies corresponding to actual market realities.Economics order quantity(EOQ)models are often used to develop inventory policies.However,due to the variable nature of the demand rate function of technology products,the traditional EOQ models may not be useful for developing replenishment policies for technology products.In addition to the consumer adoption process,inventory managers also face the challenge of imperfect quality products while strategizing business policies.Imperfect quality products can come from flawed transport and storage conditions,or they may come due to the faulty production process.Proper inspection or screening of the lot is important for removing the desired level of defective items before delivery to the customers.In this paper,we propose a new EOQ model for technology items with imperfect quality where the demand rate will follow life-cycle dynamics,and sales are treated as a function of product awareness,utility,and consumer affordability.To confirm the validity of the proposed framework,a numerical analysis is performed under different market conditions.
文摘The present paper studies a supply chain model with items that are of imperfect quality and with the assumption that end demand is responsive to price and promotion cost.The seller delivers items to the buyer in a lot.After an inspection process,it is observed that few articles produced are not of perfect quality.These defects might be the result of common operations or static maintenance.These defective items are then collected and are sold at a lower/discounted price.In this paper,supply chain models are developed to approve the interaction among the players,in the supply chain channel.This interaction between the players is demonstrated by non-cooperative and cooperative game theoretical approaches.In non-cooperative approach,optimal solutions are attained by game theoretic approaches named as Seller–Stackelberg and Buyer–Stackelberg.In the cooperative approach,a Pareto efficient solution is outlined.In the last,numerical illustrations with sensitivity scrutiny are presented to support the theory of the present paper.
文摘In this paper, the classical economic order quantity （EOQ） inventory model assumption that all items of a certain product received from a supplier are of perfect quality is relaxed. Another basic assumption that the payment for the items is made at the beginning of the inventory cycle when they are received is also eased. We consider an inventory situation where items received from the supplier are of two types of quality, perfect and imperfect, and a short deferral in payment is allowed. The split between perfect and imperfect quality items is assumed to follow a known probability distribution. Both qualities of items have continuous demands, and items of imperfect quality are sold at a discount. A mathematical model is developed using the net present value of all cash flows involved in the inventory cycle. A numerical method for obtaining the optimal order quantity is presented, and the impact of the short-term financing is analyzed. An example is presented to validate the equations and illustrate the results.
