Integrated vendor-buyer inventory models with inflation and time value of money in controllable lead time

Jindal, P.; Solanki, A.

Growing Science » Decision Science Letters » Integrated vendor-buyer inventory models with inflation and time value of money in controllable lead time

Journals

DSL Volumes

Volume 1 (10)
- Issue 1 (5)
- Issue 2 (5)

Volume 2 (30)
- Issue 1 (5)
- Issue 2 (6)
- Issue 3 (9)
- Issue 4 (10)

Volume 3 (53)
- Issue 1 (15)
- Issue 2 (10)
- Issue 3 (19)
- Issue 4 (9)

Volume 4 (48)
- Issue 1 (10)
- Issue 2 (12)
- Issue 3 (14)
- Issue 4 (12)

Volume 5 (39)
- Issue 1 (12)
- Issue 2 (10)
- Issue 3 (8)
- Issue 4 (9)

Volume 6 (30)
- Issue 1 (8)
- Issue 2 (6)
- Issue 3 (9)
- Issue 4 (7)

Volume 7 (41)
- Issue 1 (8)
- Issue 2 (8)
- Issue 3 (8)
- Issue 4 (17)

Volume 8 (38)
- Issue 1 (8)
- Issue 2 (6)
- Issue 3 (14)
- Issue 4 (10)

Volume 9 (39)
- Issue 1 (8)
- Issue 2 (9)
- Issue 3 (14)
- Issue 4 (8)

Volume 10 (43)
- Issue 1 (7)
- Issue 2 (8)
- Issue 3 (20)
- Issue 4 (8)

Volume 11 (49)
- Issue 1 (9)
- Issue 2 (9)
- Issue 3 (14)
- Issue 4 (17)

Volume 12 (64)
- Issue 1 (12)
- Issue 2 (24)
- Issue 3 (13)
- Issue 4 (15)

Volume 13 (78)
- Issue 1 (21)
- Issue 2 (18)
- Issue 3 (19)
- Issue 4 (20)

Countries

Decision Science Letters

ISSN 1929-5812 (Online) - ISSN 1929-5804 (Print) Quarterly Publication Volume 5 Issue 1 pp. 81-94 , 2016

Integrated vendor-buyer inventory models with inflation and time value of money in controllable lead time Pages 81-94 Download PDF

Authors: Prashant Jindal, Anjana Solanki

DOI: 10.5267/j.dsl.2015.8.002

Keywords: Controllable lead time, Inflation, Integrated, Time value of money

Abstract: In the global critical economic scenario, inflation plays a vital role in deciding optimal pricing of goods in any business entity. This article presents two single-vendor single-buyer integrated supply chain inventory models with inflation and time value of money. Shortage is allowed during the lead time and it is partially backlogged. Lead time is controllable and can be reduced using crashing cost. In the first model, we consider the demand of lead time follows a normal distribution, and in the second model, it is considered distribution-free. For both cases, our objective is to minimize the integrated system cost by simultaneously optimizing the order quantity, safety factor, lead time and number of lots. The discounted cash flow and classical optimization technique are used to derive the optimal solution for both cases. Numerical examples including the sensitivity analysis of system parameters is provided to validate the results of the supply chain models.

How to cite this paper

 Jindal, P & Solanki, A. (2016). Integrated vendor-buyer inventory models with inflation and time value of money in controllable lead time.Decision Science Letters , 5(1), 81-94.

Refrences

Balkhi, Z. T. (2004). An optimal solution of a general lot size inventory model with deteriorated and imperfect products, taking into account inflation and time value of money. International Journal of Systems Science, 35(2), 87-96.

Bierman, H., & Thomas, J. (1977). Inventory decisions under inflationary conditions. Decision Sciences, 8(1), 151-155.

Buzacott, J.A. (1975). Economic order quantities with inflation. Operational Research Quarterly, 26(3), 553–558.

Chern, M.S., Yang, H.L., Teng, J.T., & Papachristos, S. (2008). Partial backlogging inventory models for deteriorating items with fluctuating demand under inflation. European Journal of Operational Research 191(1), 125–139.

Gallego, G., & Moon, I. (1993). The distribution free newsboy problem: review and extensions. Journal of the Operational Research Society, 44(8), 825–834.

Horowitz, I. (2000). EOQ and inflation uncertainty. International Journal of Production Economics, 65(2), 217–224.

Jindal, Prashant, & Solanki, Anjana. (2014). Minimax distribution-free procedure for integrated inventory model with backorder price discount and controllable lead time. International Journal of Systems Science: Operations & Logistics, 1(3), 131-141.

Lo S.T., Wee H.M., & Huang W.C. (2007). An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation. International Journal of Production Economics, 106(1), 248-260.

Mirzazadeh, A. (2011). A Comparison of the Mathematical Modeling Methods in the Inventory Systems under Uncertain Inflationary Conditions. International Journal of Engineering Science and Technology, 3, 6131-6142.

Mirzazadeh, A. (2013). Inventory management under stochastic conditions with multiple objectives. Artificial Intelligence Research, 2(3), p16.

Misra, R.B. (1975). A study of inflationary effects on inventory systems. Logistic Spectrum, 9(3), 260–268.

Misra, R.B. (1979). A note on optimal inventory management under inflation. Naval Research Logistics Quarterly, 26 (1), 161–165.

Moon, I., & Yun, W. (1993), A note on evaluating investments inventory systems: A net present value framework. The Engineering Economist, 39(1) 93-99.

Ray, J., & Chaudhuri, K. S. (1997). An EOQ model with stock-dependent demand, shortage, inflation and time discounting. International Journal of Production Economics, 53(2), 171-180.

Sarker, B. R., & Pan, H. (1994). Effects of inflation and the time value of money on order quantity and allowable shortage. International Journal of Production Economics, 34(1), 65-72.

Shah, N. H., & Shukla, K. T. (2010). Deteriorating inventory model in demand declining market under inflation when supplier credits linked to order quantity.Investigaci?n Operacional, 31(2), 95-108.

Uthayakumar R., & Geetha K. V. (2009). Replenishment policy for single item inventory model with money inflation. OPSEARCH, 46(3), 345–357.

Wee, H. M., & Law, S. T. (1999). Economic production lot size for deteriorating items taking account of the time-value of money. Computers & Operations Research, 26(6), 545-558.

Wee, H. M., & Law, S. T. (2001). Replenishment and pricing policy for deteriorating items taking into account the time-value of money. International Journal of Production Economics, 71(1), 213-220.

Yang, G., Ronald, R. J., & Chu, P. (2005). Inventory models with variable lead time and present value. European Journal of Operational Research, 164(2), 358-366.