Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

Abu Hashan Md Mashud, Hui-Ming Wee, Chiao-Ven Huang and Jei-Zheng Wu
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Abu Hashan Md Mashud: Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
Hui-Ming Wee: Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan
Chiao-Ven Huang: Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan
Jei-Zheng Wu: Department of Business Administration, Soochow University, 56 Section 1, Kuei-yang Street, Taipei 10048, Taiwan

Mathematics, 2020, vol. 8, issue 11, 1-18

Abstract: Product deterioration is a common phenomenon and is overlooked in most contemporary research on the newsboy problem. In this study, we have considered product deterioration in a production–inventory newsboy model based on multiple just-in-time (JIT) deliveries. This model is solved by a classical optimization technique for the manufacturer production size, wholesale price, replenishment plan, and retailer order policy using a distribution-free approach. Moreover, in order to improve business and entice more customers, a return policy and a post-sale warranty policy is adopted in the model. Theoretical development and numerical examples are provided to demonstrate the validity of this approach.

Keywords: production inventory; newsboy model; deteriorating items; distribution free (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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