Open AccessQuantity discount for integrated supply chain model with back order and controllable deterioration rate
Author(s) -
Poonam Mishra,
Isha Talati
Publication year - 2018
Publication title -
yugoslav journal of operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 21
eISSN - 1820-743X
pISSN - 0354-0243
DOI - 10.2298/yjor171014012m
Subject(s) - supply chain , profit (economics) , economic order quantity , order (exchange) , stock (firearms) , business , operations research , industrial organization , computer science , environmental economics , microeconomics , economics , marketing , mathematics , finance , mechanical engineering , engineering
Due to uncertainty in economy, business players examine different ways to ensure the survival and growth in the competitive atmosphere. In this scenario, the use of effective promotional tool and co-ordination among players enhance supply chain profit. The proposed model deals with the effect of quantity discount on an integrated inventory system for constantly deteriorating items with fix life time. We use advertisement and quantity discount to accelerate stock dependent demand and further, the offered preservation technology for controlling deterioration rate. The model is validated numerically, and the sensitivity analysis for critical supply chain parameters is carried out. The results can be used in the decision making process of the supply chains associated with the supply of cosmetic, tinned food, drugs, and other FMCGs.