Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 4

Publications

4 Retail Inventory Management for Perishable Products with Two Bins Strategy

Authors: Madhukar Nagare, Pankaj Dutta, Amey Kambli

Abstract:

Perishable goods constitute a large portion of retailer inventory and lose value with time due to deterioration and/or obsolescence. Retailers dealing with such goods required considering the factors of short shelf life and the dependency of sales on inventory displayed in determining optimal procurement policy. Many retailers follow the practice of using two bins - primary bin sales fresh items at a list price and secondary bin sales unsold items at a discount price transferred from primary bin on attaining certain age. In this paper, mathematical models are developed for primary bin and for secondary bin that maximizes profit with decision variables of order quantities, optimal review period and optimal selling price at secondary bin. The demand rates in two bins are assumed to be deterministic and dependent on displayed inventory level, price and age but independent of each other. The validity of the model is shown by solving an example and the sensitivity analysis of the model is also reported.

Keywords: Retail Inventory, Perishable Products, Two Bin, Profitable Sales.

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3 On Solving Single-Period Inventory Model under Hybrid Uncertainty

Authors: Madhukar Nagare, Pankaj Dutta

Abstract:

Inventory decisional environment of short life-cycle products is full of uncertainties arising from randomness and fuzziness of input parameters like customer demand requiring modeling under hybrid uncertainty. Prior inventory models incorporating fuzzy demand have unfortunately ignored stochastic variation of demand. This paper determines an unambiguous optimal order quantity from a set of n fuzzy observations in a newsvendor inventory setting in presence of fuzzy random variable demand capturing both fuzzy perception and randomness of customer demand. The stress of this paper is in providing solution procedure that attains optimality in two steps with demand information availability in linguistic phrases leading to fuzziness along with stochastic variation. The first step of solution procedure identifies and prefers one best fuzzy opinion out of all expert opinions and the second step determines optimal order quantity from the selected event that maximizes profit. The model and solution procedure is illustrated with a numerical example.

Keywords: Fuzzy expected value, Fuzzy random demand, Hybrid uncertainty, Optimal order quantity, Single-period inventory

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2 A Simulation Study of Bullwhip Effect in a Closed-Loop Supply Chain with Fuzzy Demand and Fuzzy Collection Rate under Possibility Constraints

Authors: Debabrata Das, Pankaj Dutta

Abstract:

Along with forward supply chain organization needs to consider the impact of reverse logistics due to its economic advantage, social awareness and strict legislations. In this paper, we develop a system dynamics framework for a closed-loop supply chain with fuzzy demand and fuzzy collection rate by incorporating product exchange policy in forward channel and various recovery options in reverse channel. The uncertainty issues associated with acquisition and collection of used product have been quantified using possibility measures. In the simulation study, we analyze order variation at both retailer and distributor level and compare bullwhip effects of different logistics participants over time between the traditional forward supply chain and the closed-loop supply chain. Our results suggest that the integration of reverse logistics can reduce order variation and bullwhip effect of a closed-loop system. Finally, sensitivity analysis is performed to examine the impact of various parameters on recovery process and bullwhip effect.

Keywords: Bullwhip Effect, Fuzzy Possibility Measures, Reverse Supply Chain, System Dynamics.

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1 A Study on Linking Upward Substitution and Fuzzy Demands in the Newsboy-Type Problem

Authors: Pankaj Dutta, Debjani Chakraborty

Abstract:

This paper investigates the effect of product substitution in the single-period 'newsboy-type' problem in a fuzzy environment. It is supposed that the single-period problem operates under uncertainty in customer demand, which is described by imprecise terms and modelled by fuzzy sets. To perform this analysis, we consider the fuzzy model for two-item with upward substitution. This upward substitutability is reasonable when the products can be stored according to certain attribute levels such as quality, brand or package size. We show that the explicit consideration of this substitution opportunity increase the average expected profit. Computational study is performed to observe the benefits of product's substitution.

Keywords: Fuzzy demand, Newsboy, Single-period problem, Substitution.

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