Integrating inventory planning, pricing and maintenance for perishable products in a two-component parallel manufacturing system with common cause failures

Ali Salmasnia () and Ali Talesh-Kazemi
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Ali Salmasnia: University of Qom
Ali Talesh-Kazemi: University of Qom

Operational Research, 2022, vol. 22, issue 2, No 14, 1235-1265

Abstract: Abstract Since inventory level is a function of two factors of production and demand rates, and on the other side, demand rate is a function of price and shortage time, and production rate is a function of maintenance policy applied on machine, in this study, inventory planning, pricing and maintenance are integrated for perishable products in a parallel system including two components, although they are analyzed separately in the literature. On the other hand, it is a known fact that the failure of a component affects the other component performance, however, in the majority of researches, in an effort to simplify, failures are assumed to be independent from one another. In order to show the effectiveness of the proposed model three comparative studies are carried out. The first comparative study confirms the effect of maintenance activities on increasing profit and reduction of product price, whereas, the second study shows the effect of assuming perishability of products with different lifetimes, and the last comparison shows the effect of assuming interdependence of failures on reduction of corrective maintenance costs. With the aim of examining the effect of the parameters on the profit per time unit, sensitivity analysis is done on three parameters (1) the shape parameter of Weibull distribution; (2) the repairing costs of each component; (3) sensitivity coefficient of price.

Keywords: Pricing; Maintenance; Inventory control; Common cause failures; Perishable product (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s12351-020-00590-6

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