Publication detail

Optimal replenishment policy for deteriorating and non-deteriorating items

NOVOTNÁ, V. BOBALOVÁ, M.

Original Title

Optimal replenishment policy for deteriorating and non-deteriorating items

Type

journal article in Web of Science

Language

English

Original Abstract

The purpose of the paper is to present a model allowing the retailer to determine the optimal price of three kinds of items in a situation where the supplier provides the retailer with an interest-free loan for a contractually agreed period. The scientific aim is to verify whether an optimization problem is solvable, and determine the maximum length of the interval over which the goods can be sold with a profit in a situation where the model features two kinds of deteriorating items and one non deteriorating item. The economic theory is explained in the introductory section and serves as a basis for the drawing up of the model. Methods of analysis, synthesis, dynamic modeling and differential calculus of multivariate functions are also used. The situation where the dealer sells all his goods in time and the situation where this period is not observed are analyzed. Thanks to the exact expression of the model it is possible to assess the effect of any changes in external factors. Authors’ findings are that the used variables form compact set and analysed function is continues on this space, we can use Weistrass Theorem for additional calculation with success. Thanks to the exact expression of the model it is possible to assess the effect of any changes in external factors. The model proposed in the paper may be expanded in the future. One possibility is to consider a generalization of the model allowing for shortage of items, quantity discounts, inflation, etc.

Keywords

differential calculus of multivariable functions, differential equations, Taylor series, replenishment policy, deteriorating items

Authors

NOVOTNÁ, V.; BOBALOVÁ, M.

Released

28. 6. 2018

Publisher

Kaunas University of technology

Location

Kaunas

ISBN

1392-2785

Periodical

Engineering Economics

Year of study

29

Number

2

State

Republic of Lithuania

Pages from

272

Pages to

280

Pages count

8

URL

http://inzeko.ktu.lt/index.php/EE/article/view/14204

Full text in the Digital Library

http://hdl.handle.net/11012/201704

BibTex

@article{BUT148600,
  author="Veronika {Novotná} and Martina {Bobalová}",
  title="Optimal replenishment policy for deteriorating and non-deteriorating items",
  journal="Engineering Economics",
  year="2018",
  volume="29",
  number="2",
  pages="272--280",
  doi="10.5755/j01.ee.29.3.14204",
  issn="1392-2785",
  url="http://inzeko.ktu.lt/index.php/EE/article/view/14204"
}