TY - JOUR
T1 - Joint pricing and replenishment decisions for deteriorating items with lot-size and time-dependent purchasing cost under credit period
AU - Tsao, Yu Chung
AU - Sheen, Gwo Ji
N1 - Funding Information:
The authors express their gratitude to the Associate Editor and three anonymous reviewers for their detailed comments and valuable suggestions to improve the exposition of this paper. This research was supported in part by the National Science Council under grant NSC 94-2416-H-008-008.
PY - 2007/1
Y1 - 2007/1
N2 - In the real world, the purchasing cost would normally decrease as the replenishment lot-size becomes larger. In other words, the quantity discount effect applies. The purchasing cost may also decrease with the passage of time, for example if the supplier has made effective improvements in their production efficiency, in other words due to the effect of the learning curve. In this article we discuss a purchasing cost pattern which considers these phenomena: i.e., lot-size and time-dependence. The objective of the model is to make decisions related to the pricing and replenishment of deteriorating items over a finite time horizon, given variable purchasing cost and credit period. We provide the properties and develop algorithms for solving the problems described. Also, we discuss the influence of the variable purchasing cost, the length of the credit period, the rate of deterioration, etc., on the retailer behavior.
AB - In the real world, the purchasing cost would normally decrease as the replenishment lot-size becomes larger. In other words, the quantity discount effect applies. The purchasing cost may also decrease with the passage of time, for example if the supplier has made effective improvements in their production efficiency, in other words due to the effect of the learning curve. In this article we discuss a purchasing cost pattern which considers these phenomena: i.e., lot-size and time-dependence. The objective of the model is to make decisions related to the pricing and replenishment of deteriorating items over a finite time horizon, given variable purchasing cost and credit period. We provide the properties and develop algorithms for solving the problems described. Also, we discuss the influence of the variable purchasing cost, the length of the credit period, the rate of deterioration, etc., on the retailer behavior.
KW - Credit period
KW - Demand function
KW - Deteriorating item
KW - Variable purchasing cost
UR - http://www.scopus.com/inward/record.url?scp=34547381735&partnerID=8YFLogxK
U2 - 10.1080/00207720701431144
DO - 10.1080/00207720701431144
M3 - 期刊論文
AN - SCOPUS:34547381735
SN - 0020-7721
VL - 38
SP - 549
EP - 561
JO - International Journal of Systems Science
JF - International Journal of Systems Science
IS - 7
ER -