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    Title: Optimal order policy in response to announced price increase for deteriorating items with limited special order quantity
    Authors: Ouyang, Liang-Yuh;Wu, Kun-Shan;Yang, Chih-Te;Yen, Hsiu-Feng
    Contributors: 淡江大學管理科學學系
    Keywords: inventory;deteriorating items;price increase;limited special order quantity
    Date: 2016-02-01
    Issue Date: 2014-08-04 14:04:55 (UTC+8)
    Publisher: Abingdon: Taylor & Francis
    Abstract: When a supplier announces an impending price increase due to take effect at a certain time in the future, it is important for each retailer to decide whether to purchase additional stock to take advantage of the present lower price. This study explores the possible effects of price increases on a retailer's replenishment policy when the special order quantity is limited and the rate of deterioration of the goods is assumed to be constant. The two situations discussed in this study are as follows: (1) when the special order time coincides with the retailer's replenishment time and (2) when the special order time occurs during the retailer's sales period. By analysing the total cost savings between special and regular orders during the depletion time of the special order quantity, the optimal order policy for each situation can be determined. We provide several numerical examples to illustrate the theories in practice. Additionally, we conduct a sensitivity analysis on the optimal solution with respect to the main parameters.
    Relation: International Journal of Systems Science 47(3), pp.718-729
    DOI: 10.1080/00207721.2014.902157
    Appears in Collections:[企業管理學系暨研究所] 期刊論文
    [管理科學學系暨研究所] 期刊論文

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