Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market
The retailer's optimal procurement quantity and the number of transfers from the warehouse to the display area are determined when demand is decreasing due to recession and items in inventory are subject to deterioration at a constant rate. The objective is to maximize the retailer's total...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Wiley
2009-01-01
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| Series: | International Journal of Mathematics and Mathematical Sciences |
| Online Access: | http://dx.doi.org/10.1155/2009/506376 |
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| _version_ | 1832551395178315776 |
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| author | Nita H. Shah Kunal T. Shukla |
| author_facet | Nita H. Shah Kunal T. Shukla |
| author_sort | Nita H. Shah |
| collection | DOAJ |
| description | The retailer's optimal procurement quantity and the number of transfers from the warehouse to the display area are determined when demand is decreasing due to recession and items in inventory are subject to deterioration at a constant rate. The objective is to maximize the retailer's total profit per unit time. The algorithms are derived to find the optimal strategy by retailer. Numerical examples are given to illustrate the proposed model. It is observed that during recession when demand is decreasing, retailer should keep a check on transportation cost and ordering cost. The display units in the show room may attract the customer. |
| format | Article |
| id | doaj-art-5f9d3c34e6ac48dda2fecdf5d64cbb3a |
| institution | Kabale University |
| issn | 0161-1712 1687-0425 |
| language | English |
| publishDate | 2009-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Journal of Mathematics and Mathematical Sciences |
| spelling | doaj-art-5f9d3c34e6ac48dda2fecdf5d64cbb3a2025-02-03T06:01:35ZengWileyInternational Journal of Mathematics and Mathematical Sciences0161-17121687-04252009-01-01200910.1155/2009/506376506376Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining MarketNita H. Shah0Kunal T. Shukla1Department of Mathematics, Gujarat University, Ahmedabad 380 009, IndiaJG College of Computer Application, Drive-in Road, Ahmedabad 380 054, IndiaThe retailer's optimal procurement quantity and the number of transfers from the warehouse to the display area are determined when demand is decreasing due to recession and items in inventory are subject to deterioration at a constant rate. The objective is to maximize the retailer's total profit per unit time. The algorithms are derived to find the optimal strategy by retailer. Numerical examples are given to illustrate the proposed model. It is observed that during recession when demand is decreasing, retailer should keep a check on transportation cost and ordering cost. The display units in the show room may attract the customer.http://dx.doi.org/10.1155/2009/506376 |
| spellingShingle | Nita H. Shah Kunal T. Shukla Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market International Journal of Mathematics and Mathematical Sciences |
| title | Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market |
| title_full | Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market |
| title_fullStr | Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market |
| title_full_unstemmed | Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market |
| title_short | Optimal Transfer-Ordering Strategy for a Deteriorating Inventory in Declining Market |
| title_sort | optimal transfer ordering strategy for a deteriorating inventory in declining market |
| url | http://dx.doi.org/10.1155/2009/506376 |
| work_keys_str_mv | AT nitahshah optimaltransferorderingstrategyforadeterioratinginventoryindecliningmarket AT kunaltshukla optimaltransferorderingstrategyforadeterioratinginventoryindecliningmarket |