Preservation technology investment for an inventory system with variable deterioration rate under expiration dates and price sensitive demand
DOI:
https://doi.org/10.2298/YJOR190410011PKeywords:
Variable Deterioration, Machine-shift, Price-sensitive Demand, Expiration Date, Bi-level Approach, Preservation TechnologyAbstract
The proposed study addresses a supplier-retailer inventory problem by considering the detrimental impacts of deterioration. The inventory produced by the supplier undergo a machine-shift and hence, produces non-conforming items. The retailer uses the preservation technology to deal with deteriorating items ingeniously where the demand is price-sensitive at the buyers end. Two models are developed through different means viz. Integrated and Bi-level approach and compared so to impart some constructive organizational insights. Sensitivity analysis was done over a numerical example to validate strength of the developed models.References
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