A Discount Technique-Based Inventory Management on Electronics Products Supply Chain

Md. Sujan Miah, Md. Mominul Islam, Mahmudul Hasan, Abu Hashan Md. Mashud, Dipa Roy and Shib Sankar Sana
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Md. Sujan Miah: Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
Md. Mominul Islam: Department of Physics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
Mahmudul Hasan: Department of Mathematics, Jahangirnagar University, Saver, Dhaka 1342, Bangladesh
Abu Hashan Md. Mashud: Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
Dipa Roy: Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
Shib Sankar Sana: Kishore Bharati Bhagini Nivedita College, Ramkrishna Sarani, Behala, Kolkata 700060, India

JRFM, 2021, vol. 14, issue 9, 1-16

Abstract: Inventory management is becoming very challenging for the retailer over the years due to the uncertainty in the demand and supply of products in financial risk and management systems. In a competitive market, running a business smoothly in a highly suitable place is day by day becoming tough due to the very high fare for those locations. Thus, limited storage is available in those elite places with high fares, and a retailer takes a financial risk by stocking huge amounts of products in those limited storage stores. Thus, the appropriate financial analysis is required to find out optimal strategies (financial decisions) to sustain a business organization of electronic products in a global competitive business environment. As a result, when bulk purchases of electronic products, for example, T.V., Fridges, Oven, etc., have been made by the retailer, he faces two problems. The first one is related to the limited storage; as a result, he has to pay a considerable amount to hold the products for a long time. The second one is shortages of liquid money as he invested massive amounts. To avoid these problems, he offers some price discounts on the market’s original selling price to sell the products quickly for a limited time prior to recovering his capital investment. For that reason, a price, time, and stock dependent realistic demand function have been considered in this proposed paper with two modes of discount policy. The proposed model has been solved by a classical optimization technique from calculus and provides some insights for the retailer. Some numerical examples and graphs are provided to illustrate the model.

Keywords: price sensitive; inventory management; electronics products; stock; discount policy (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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