Commenced in January 2007
Paper Count: 32451
Optimal Selling Prices for Small Sized Poultry Farmers
Abstract:In Japan, meat-type chickens are mainly classified into three categories: (1) Broilers, (2) Branded chickens, and (3) Jidori (Free-range local traditional pedigree chickens). The Jidori chickens are certified by the Japanese Ministry of Agriculture, whilst, for the Branded chickens, there is no regulation with respect to their breed (genotype) or methods for rearing them. It is, therefore, relatively easy for poultry farmers to introduce Branded than Jidori chickens. The Branded chickens are normally fed a low-calorie diet with ingredients such as herbs, which lengthens their breeding period (compared with that of the Broilers) and increases their market value. In the field of inventory management, fast-growing animals such as broilers are categorised as ameliorating items. To the best of our knowledge, there are no previous studies that have explicitly considered smaller sized poultry farmers with limited breeding areas. This study develops an inventory model for a small sized poultry farmer that produces both the Broilers (Product 1) and the Branded chickens (Product 2) with different amelioration rates. The poultry farmer’s total profit per unit of time is formulated as a function of selling prices by using a price-dependent demand function. The existence of a unique optimal selling price for each product, which maximises the total profit, established. It has also been confirmed through numerical examples that, when the breeding area is fixed, the total profit could increase if the poultry farmer reduced the product quantity of Product 1 to introduce Product 2.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1315981Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 719
 R. Komai, “Branded chicken and Free-range local traditional pedigree chicken (Meigaradori to Jidori) (in Japanese),” Animal-husbandry, vol. 62, no. 6, pp. 657–664, Jun. 2008.
 K. Sasaki et al., “Qualitative and quantitative comparisons of texture characteristics between broiler and Jidori-niku, Japanese indigenous chicken meat, assessed by a trained panel,” The Journal of Poultry Science, vol. 54, no. 1, pp. 87–96, Aug. 2017.
 M. Nishiwaki et al., The effect of feeding herb on growth and meat quality of broiler chickens (Shiryouyou herb ga broiler no seichou oyobi nikushitsu ni ataeru eikyou) (in Japanese), Japanese Journal of Grassland Science, vol. 47, no. Separate, pp. 232–233, Mar. 2001.
 H. S. Hwang, “A study on an inventory model for items with Weibull ameliorating,” Computers & Industrial Engineering, vol. 33, pp. 701–704, Dec.1997.
 H. S. Hwang, “Inventory models for both deteriorating and ameliorating items,” Computers and Industrial Engineering, vol. 37, pp. 257–260, Oct. 1999.
 B. Mondal, A. K. Bhunia and M. Maiti, “An inventory system of ameliorating items for price dependent demand rate,” Computers & industrial engineering, vol. 45, pp. 443–456, Oct. 2003.
 H. S. Hwang, “A stochastic set-covering location model for both ameliorating and deteriorating items,” Computers & Industrial Engineering, vol. 46, no. 2, pp. 313–319, Apr. 2004.
 S. T. Law and H. M. Wee, “An integrated production-inventory model for ameliorating and deteriorating items taking account of time discounting,” Mathematical and Computer Modelling, vol. 43, pp. 673–685, Mar. 2006.
 H. M. Wee, S.-T. Lo, J. Yu, and H. C. Chen, “An inventory model for ameliorating and deteriorating items taking account of time value of money and finite planning horizon,” International Journal of Systems Science, vol. 39, no. 8, pp. 801–807, Aug. 2008.
 Vandana and H. M. Srivastava, “An inventory model for ameliorating/deteriorating items with trapezoidal demand and complete backlogging under inflation and time discounting,” Mathematical Methods in the Applied Sciences, vol. 40, no. 8, pp. 2980–2993, May. 2017.
 S. Y. Chou, W. T. Chouhuang, J. S-J. Lin, and P. Chu, “An analytic solution approach for the economic order quantity model with Weibull ameliorating items,” Mathematical and computer modeling, vol. 48, pp. 1868–1874, Dec. 2008.
 H. Tuan, S. Lin, and P. Julian, “Improvement for amelioration inventory model with Weibull distribution,” Mathematical Problems in Engineering, pp. 1–8, Jun. 2017.
 K. Hahn, H. Hwang, and S. Shinn, "A returns policy for distribution channel coordination of perishable items,'' European Journal of Operational Research, vol. 152, no.3, pp. 770–780, Feb. 2004.
 D. Seifert, R. W. Seifert and O. H. D. Isaksson, “A test of inventory models with permissible delay in payment,'' International Journal of Production Research, vol. 55, no. 4, pp. 1117–1128, Aug. 2017.