SUPPLY CHAIN PERFORMANCE FOR DETERIORATING ITEMS WITH COOPERATIVE ADVERTISING

To study the effect of cooperative advertising on the supply chain of deteriorating items, this paper establishes a Stackelberg game model for a two-echelon deteriorating items supply chain composed of one manufacturer and one retailer under a given support program with an exogenous participation rate. The manufacturer as the leader determines the wholesale price and production rate, and the retailer as the follower determines the retail price and advertising strategies. The strategies of the players under the decentralized scenario and the centralized scenario are respectively characterized. Numerical simulations and sensitivity analysis are conducted to gain some managerial insights. It is shown that the pricing, advertising and production strategies are negatively correlated to deteriorating coefficient, and both the profit and the channel efficiency decrease with deteriorating coefficient; The interaction between price, advertising investment and production rate results in a higher retail price of the centralized channel compared to that of the decentralized channel; Implementing the cooperative advertising program does improve the performance of the supply chain in some cases and the participation rate roughly at 0.5 is most preferable, but it is also possible to distort incentive and damage the channel performance when the participation rate reaches a relatively high level.

Sustainable Integrated Inventory Model for Substitutable Deteriorating Items Considering Both Transport and Industry Carbon Emissions

Sustainable integrated inventory management policy focuses on reducing the environmental impact of the manufacturing and transport sector.This study develops an integrated single-manufacturer single-buyer inventory model for substitutable deteriorating items considering transport and industry carbon emissions.This article categorizes carbon emissions into two parts:direct and indirect emissions.We also assume two mutually substitutable items,and substitution is considered on the buyer's side.If one of the items is out of stock,the demand for that item can be partially satisfied by the stock of the other item;else,demand will be lost.The purpose of this study is to minimize the integrated cost of the supply chain with total carbon emissions produced by industry and transport sectors and to determine the optimal number of deliveries,order level and carbon emission quantity.A solution procedure is developed to find the optimal values of the policy.Numerical experiments and sensitivity analyses are presented to demonstrate the proposed model.

A Note on an Order Level Inventory Model with Varying Two-Phased Demand and Time-Proportional Deterioration

The main purpose of this paper is to generalize the effect of two-phased demand and variable deterioration within the EOQ (Economic Order Quantity) framework. The rate of deterioration is a linear function of time. The two-phased demand function states the constant function for a certain period and the quadratic function of time for the rest part of the cycle time. No shortages as well as partial backlogging are allowed to occur. The mathematical expressions are derived for determining the optimal cycle time, order quantity and total cost function. An easy-to-use working procedure is provided to calculate the above quantities. A couple of numerical examples are cited to explain the theoretical results and sensitivity analysis of some selected examples is carried out.

AN OPTIMAL DYNAMIC ADVERTISING MODEL WITH INVERSE INVENTORY SENSITIVE DEMAND EFFECT FOR DETERIORATING ITEMS

This paper proposes a dynamic advertising model for deteriorating items, and the demand is influenced by goodwill and inventory level. The goodwill affected by advertising effort has a positive effect on demand while the inventory level has a negative effect on demand, which is named as inverse inventory sensitive demand effect. We assume that the deteriorating rate could be influenced by the inventory level and we determine the deteriorating rate formulation based on this assumption. The optimal advertising effort and inventory level are obtained by solving the optimization problem based on Pontryagin＇s maximum principle. Furthermore, numerical studies are provided and some managerial insights are presented.

Optimal Decision Rule of the inventory Problem for Deteriorating items with Shortages and Time－varying Demand

In this paper, we consider the general inventory problem for deteriorating items having time-varying demand and shortages. An optimal order policy is obtained for determining the number of reorders and the time of the reorder points and shortage points in order to minimize the total cost of system. Several fundamental theoretical results are established for this model. The corresponding cases for no-deterioration and no-shortage is also discussed. To illustrate the solution procedure,numerical examples are shown for the special case of linear increasing demand.