Optimal Inventory Management Policies for Substitutable Products Considering Non-instantaneous Decay and Cost of Substitution

Ranu Singh () and Vinod Kumar Mishra ()
Additional contact information
Ranu Singh: Madan Mohan Malaviya University of Technology
Vinod Kumar Mishra: Madan Mohan Malaviya University of Technology

Chapter Chapter 5 in Applications of Operational Research in Business and Industries, 2023, pp 69-81 from Springer

Abstract: Abstract Substitution is an important key of real retail business market. Nowadays, most of retailers offer similar product to the customer in out-of-stock period. This study presents an inventory management approach for substitutable non-instantaneous decaying products under joint ordering policy. This study deals all the possible cases: when a product is completely depleted due to requirement/demand and decay, its demand is partially met by other products, and remain unsatisfied demand is lost. In this article, demand and deterioration rate are taken as deterministic type. The purpose of this article is to find the optimal ordering quantities to optimize the total cost. This article presents solution methodology and provides a numerical simulation to illustrate the model’s application. The numerical result shows a significant reduction in overall cost in the case of with substitution over without substitution case. Finally, the sensitivity of key parameters is examined and concludes this study with some future plans.

Keywords: Substitutable product; Joint replenishment; Inventory management; Non-instantaneous decay (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-19-8012-1_5

Ordering information: This item can be ordered from
http://www.springer.com/9789811980121

DOI: 10.1007/978-981-19-8012-1_5

Access Statistics for this chapter

More chapters in Lecture Notes in Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().