淡江大學機構典藏:Item 987654321/52735
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    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/52735


    Title: Optimal Order Policy for Deteriorating Items in Response to Temporary Price Discount Linked to Order Quantity
    Authors: Ouyang, Liang-Yuh;Yang, Chih-Te;Yen, Hsiu-Feng
    Contributors: 淡江大學經營決策學系
    Keywords: Inventory;Temporary price discount;deteriorating item
    Date: 2009-12
    Issue Date: 2010-12-01 10:27:18 (UTC+8)
    Publisher: 臺北縣：淡江大學
    Abstract: This paper investigates the possible effects of a temporary price discount offered by a supplier on a retailer's replenishment policy for deteriorating items, whereby the price discount rate depends on the order quantity. The purpose of this study is to develop a decision process for retailers to assist in determining whether to adopt a regular or special order policy. Furthermore, the optimal quantity of a special order policy for a selected case is determined by maximizing the total cost saving between special and regular orders for the duration of the depletion time. This research establishes an algorithm to determine the optimal solution and utilizes several numerical examples to illustrate the theoretical results and subsequently conducts a sensitivity analysis of the optimal solution with respect to the main parameters. Finally, the results reveal that (1) the optimal special order quantity is determined by trading off the benefits of the price discount against the additional holding cost, (2) the retailer benefits in terms of total cost saving if the remnant inventory is as low as possible when adopting a special order policy, (3) for the retailer it is preferable to adopt the special order policy if the unit purchase cost, market demand rate and/or ordering cost increase, and (4) the retailer will order a lower quantity and the total cost saving will decrease when either the holding cost rate or deterioration rate is high. Thus, this study provides the basis for enterprises to make inventory decisions.
    Relation: Tamkang Journal of Mathematics=淡江數學 40(4), pp.383-400
    Appears in Collections:[Department of Management Sciences] Journal Article

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