Optimal pricing and inventory decisions in a centralised and de-centralised two-echelon inventory system under nonlinear price dependent demand

In this paper, a two-echelon inventory system with a single-manufacturer and single-retailer is considered. Mathematical model for both centralised and decentralised supply chain (SC) is developed by incorporating setup/ordering cost, carrying cost and transportation cost of the respective entities of the chain. Replenishment quantity of the retailer and the number of shipments from manufacturer to retailer are considered as the decision variables in the model. The objective of the proposed model is to demonstrate the optimality of the annual net revenue of the SC and the decision variables under nonlinear price-dependent demand. A numerical example is devised and the model is solved using the computer program written in MATLAB. Also, the sensitivity analysis is carried out to demonstrate the variation in the objective function with model parameters. From the findings of the research, it is concluded that with centralised decisions, percentage increase in the optimality of the annual net revenue of the SC decreases with manufacturer's unit cost whereas increases with retailer's unit cost.

• Record URL:
  https://doi.org/10.1504/IJLSM.2018.089792
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/17427967
• Supplemental Notes:
  • Copyright © 2018 Inderscience Enterprises Ltd.
• Authors:
  • Nagaraju, Dega
  • Kumar, Kalla Kiran
  • Narayanan, S
• Publication Date: 2018

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 374-398
• Serial:
  • International Journal of Logistics Systems and Management
  • Volume: 29
  • Issue Number: 3
  • Publisher: Inderscience Enterprises Limited
  • ISSN: 1742-7967
  • EISSN: 1742-7945
  • Serial URL: http://www.inderscience.com/jhome.php?jcode=ijlsm

Subject/Index Terms

• TRT Terms: Demand; Inventory; Mathematical models; Optimization; Pricing; Retail trade; Revenues; Supply chain management; Unit costs
• Subject Areas: Administration and Management; Finance; Freight Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 01665897
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 11 2018 11:37AM