<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Recently, utilizing appropriate inventory control policy and determining the optimal selling price for various goods has been the main topic of scientific and industrial research. Inventory management policy 1 by the seller is one solution that improves the chain’s performance by creating coordination between members of the supply chain. The current study attempts to devise an integrated model of inventory pricing and control under the inventory management policy by the seller for perishable goods with shortages is considered. The purpose of presenting the model is to determine the optimal price, the optimal repayment time, and the order size, in order to maximize the profit. To acquire those optimal values, the profit functions of the buyer and the seller are taken into account. Given the results acquired, it is demonstrated that at any cost, the repayment time is unique and optimal. It is concluded that with the optimal recovery time available, the objective function is a concave function of price, and its optimal value is available. Furthermore, utilizing the inventory management policy by the seller could be a proper means to reducing retailer costs while raising their profit.</p>
</abstract>

Recently, utilizing appropriate inventory control policy and determining the optimal selling price for various goods has been the main topic of scientific and industrial research. Inventory management policy 1 by the seller is one solution that improves the chain’s performance by creating coordination between members of the supply chain. The current study attempts to devise an integrated model of inventory pricing and control under the inventory management policy by the seller for perishable goods with shortages is considered. The purpose of presenting the model is to determine the optimal price, the optimal repayment time, and the order size, in order to maximize the profit. To acquire those optimal values, the profit functions of the buyer and the seller are taken into account. Given the results acquired, it is demonstrated that at any cost, the repayment time is unique and optimal. It is concluded that with the optimal recovery time available, the objective function is a concave function of price, and its optimal value is available. Furthermore, utilizing the inventory management policy by the seller could be a proper means to reducing retailer costs while raising their profit.

Integrated Pricing and Inventory Control for Perishable Products, Taking into Account the Lack of Backlog and Inventory Management Policy by the Seller

International University Liaison Indonesia

Public Health Department, Faculty of Health Science

University of Pembangunan Nasional Veteran

Foundations of Computing and Decision Sciences

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Recently, utilizing appropriate inventory control policy and determining the optimal selling price for various goods has been the main topic of scientific and...

Integrated Pricing and Inventory Control for Perishable Products, Taking into Account the Lack of Backlog and Inventory Management Policy by the Seller

Pubblicato online: 13 dic 2022

Pagine: 371 - 382

Ricevuto: 10 ago 2022

Accettato: 21 nov 2022

DOI: https://doi.org/10.2478/fcds-2022-0020

Parole chiave
Inventory control policy, perishable products, shortage, pricing, optimal order quantity

© 2022 Muktadi Amri Assiddiqi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Integrated Pricing and Inventory Control for Perishable Products, Taking into Account the Lack of Backlog and Inventory Management Policy by the Seller

Pubblicato online: 13 dic 2022

Pagine: 371 - 382

Ricevuto: 10 ago 2022

Accettato: 21 nov 2022

DOI: https://doi.org/10.2478/fcds-2022-0020

Parole chiaveInventory control policy, perishable products, shortage, pricing, optimal order quantity

© 2022 Muktadi Amri Assiddiqi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Parole chiave
Inventory control policy, perishable products, shortage, pricing, optimal order quantity