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IJMLC 2013 Vol.3(1): 79-86 ISSN: 2010-3700
DOI: 10.7763/IJMLC.2013.V3.277

Supply Chain Inventory Problem with Price Increased and Demand Rate Depends on Retail Price

Chih-Te Yang and Liang-Yuh Ouyang

Abstract—This study investigates the supply chain inventory problems when the supply price increases and market demand rate depends on retail price. The purpose of this study will be to determine optimal special order quantity, retail price and production cycle by maximizing the increment of joint total profit. Furthermore, due to the vendor may or not provide all the special order quantity at the buyer’s next replenishment date and hence the shortage will or not occur, two specific situations are discussed in this study. A simple algorithm to find the optimal solution is developed. Finally, several numerical examples will be presented to demonstrate the developed model and solution procedure to provide manager a useful decision consultation.

Index Terms—Inventory, deteriorating items, supply chain, price increase, price-dependent demand.

Chih-Te Yang is with Department of Industrial Management, Chien Hsin University of Science and Technology, Taoyuan, Taiwan (e-mail: ctyang@uch.edu.tw).
Liang-Yuh Ouyang is with the Department of Management Sciences Tamkang University, Tamsui, New Taipei, Taiwan (e-mail: liangyuh@ mail.tku.edu.tw).

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Cite:Chih-Te Yang and Liang-Yuh Ouyang, "Supply Chain Inventory Problem with Price Increased and Demand Rate Depends on Retail Price," International Journal of Machine Learning and Computing vol. 3, no. 1, pp. 79-86, 2013.

General Information

  • ISSN: 2010-3700 (Online)
  • Abbreviated Title: Int. J. Mach. Learn. Comput.
  • Frequency: Bimonthly
  • DOI: 10.18178/IJMLC
  • Editor-in-Chief: Dr. Lin Huang
  • Executive Editor:  Ms. Cherry L. Chen
  • Abstracing/Indexing: Scopus (since 2017), Inspec (IET), Google Scholar, Crossref, ProQuest, Electronic Journals Library.
  • E-mail: ijmlc@ejournal.net


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