An appropriate business strategy for a sale item
Prasenjit Pramanik (),
Manas Kumar Maiti () and
Manoranjan Maiti ()
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Prasenjit Pramanik: Vidyasagar University
Manas Kumar Maiti: Mahishadal Raj College
Manoranjan Maiti: Vidyasagar University
OPSEARCH, 2018, vol. 55, issue 1, 85-106
Abstract In this research work for first time a model has been proposed to find an appropriate business strategy for a seasonal sale/sale item. Here, an EOQ model for an item has been developed with selling price and time dependent demand under retailer promotional effort, where a wholesaler offers a conditional credit period to his/her retailer to boost the demand of the item to clear the end season stock. Here, it is assumed that, wholesaler offers a credit period to his/her retailer depending upon the order quantity. But retailer does not offer any credit to his/her customers. In this paper, the base demand decreases with increase of time and also no credit is available for the customers, so the base demand goes down. On the other hand, to maintain the base demand, the retailer introduced a promotional effort to boost the demand and also the less selling price increases the base demand. Due to the uncertainty of the different costs, related to the inventory control system, the proposed model also developed in imprecise environments i.e., in fuzzy, rough environments. The main purpose of this paper is to find the optimal order quantity for retailer in such a way that the profit is maximized. Under these considerations a particle swarm optimization algorithm is implemented to find the most appropriate business strategy. Here an approach is proposed which finds marketing decision of the fuzzy and rough models using credibility measure of a fuzzy event and trust measure of a rough event correspondingly, without transferring fuzzy/rough objective to any crisp equivalent. The models are illustrated with different numerical examples and some managerial insights are outlined.
Keywords: EOQ; Decreasing time varying demand; Promotional effort; Trade credit; PSO (search for similar items in EconPapers)
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