Optimal Pricing and Advertisement Policy for an Advance Order Booking Inventory System with Order Cancellation under Inflationary Condition

IF 1.3 Q3 ENGINEERING, MULTIDISCIPLINARY
K. K. Aggarwal, Shuja Ahmed, Fehmina Malik
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引用次数: 0

Abstract

The e-commerce business has grown significantly over the past few years, mainly due to providing a better customer experience through advance booking and order cancellation options with a full refund. In this paper, the inventory control problem of a firm that offers advance booking for the product and cancellation (with a full refund) before the due delivery date is addressed. A profit maximization model is formulated to find the optimum inventory cycle length, the selling price of the product, and advertisement expenditure. The discounted cash flow approach is used to take into account cash flows at different time points. Advance booking is made at the beginning of the inventory cycle at a discounted price until the time of stock arrival, followed by usual spot sales. The number of order cancellations during the advance booking period is dependent on the waiting time for receiving the order. The impact of revenue collected through advance sales is considered by including interest earned. Product demand is assumed to be the function of advertisement expenditure and the selling price of the product. A solution procedure is suggested, and the model is illustrated through numerical analysis, thereby providing valuable managerial insights based on the results obtained.
通货膨胀条件下具有取消订单的提前订货库存系统的最优定价与广告策略
电子商务业务在过去几年中大幅增长,主要是因为通过提前预订和全额退款的订单取消选项提供了更好的客户体验。在本文中,解决了一家公司的库存控制问题,该公司提前预订产品并在到期交货日期前取消(全额退款)。建立了一个利润最大化模型,以找出最佳库存周期长度、产品售价和广告支出。现金流量折现法用于考虑不同时间点的现金流量。在库存周期开始时以折扣价进行预订,直到库存到达,然后进行常规的现货销售。提前预订期间的订单取消次数取决于收到订单的等待时间。通过预售收取的收入的影响是通过包括赚取的利息来考虑的。产品需求被假定为广告支出和产品售价的函数。提出了求解程序,并通过数值分析对模型进行了说明,从而根据所获得的结果提供了有价值的管理见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.80
自引率
6.20%
发文量
57
审稿时长
20 weeks
期刊介绍: IJMEMS is a peer reviewed international journal aiming on both the theoretical and practical aspects of mathematical, engineering and management sciences. The original, not-previously published, research manuscripts on topics such as the following (but not limited to) will be considered for publication: *Mathematical Sciences- applied mathematics and allied fields, operations research, mathematical statistics. *Engineering Sciences- computer science engineering, mechanical engineering, information technology engineering, civil engineering, aeronautical engineering, industrial engineering, systems engineering, reliability engineering, production engineering. *Management Sciences- engineering management, risk management, business models, supply chain management.
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