Pricing model for deteriorating by considering of two items

Seyed Mohamad Mahdi Kazemi, Nasser Safaie and Ali Nazeri

International Journal of Procurement Management, 2020, vol. 13, issue 5, 621-634

Abstract: The main purpose of present study is to examine a three-level supply chain that comprises a manufacturer, major distributor and retailer in which two deteriorating items are manufactured. At the manufacturer level, production planning is studied. This production takes place in such a way that it can supply the needs of the wholesaler and, at the same time, prevent the increase in the rate of deteriorating of the manufactured items. At the wholesale level, warehousing management is considered in order to minimise the waste of items in the warehouse, in addition to estimating the amount of demand received by the retailer. At retail level, demand management is examined. In this paper, demand is assumed to be a linear function of price, and naturally with increasing prices, the demand decreases. The mathematical model obtained in this research is a nonlinear mathematical optimisation problem. The results of this research are generalisations of some of the mathematical models in the subject literature.

Keywords: supply chain; deteriorating item; pricing; production management. (search for similar items in EconPapers)
Date: 2020
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