{"title":"Joint pricing and lot sizing model with statistical inspection and stochastic lead time","authors":"Maryam Safarnezhad, M. Aminnayeri, R. G. Yaghin","doi":"10.1080/03155986.2020.1794227","DOIUrl":null,"url":null,"abstract":"Abstract In many real-world situations, there are a fraction of defective items in a received lot whose quality should be evaluated before storage. In this article, we address the joint ordering, pricing, and inspection planning problem for a retailer facing price-sensitive demand and stochastic supply lead-time. The fraction of nonconforming items in a received lot follows a beta distribution and the buyer considers different kinds of inspection policies that include no inspection, inspection and sampling. Moreover, a novel non-linear optimization model is developed in order to determine optimal ordering, pricing and inspection policies. An analytical solution procedure based on mathematical properties of the model is proposed to find optimal decision variables. Numerical studies are conducted in order to show the applicability of the developed model and effectiveness of the proposed algorithms.","PeriodicalId":13645,"journal":{"name":"Infor","volume":"30 1","pages":"111 - 144"},"PeriodicalIF":1.1000,"publicationDate":"2020-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Infor","FirstCategoryId":"94","ListUrlMain":"https://doi.org/10.1080/03155986.2020.1794227","RegionNum":4,"RegionCategory":"计算机科学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"COMPUTER SCIENCE, INFORMATION SYSTEMS","Score":null,"Total":0}
引用次数: 1
Abstract
Abstract In many real-world situations, there are a fraction of defective items in a received lot whose quality should be evaluated before storage. In this article, we address the joint ordering, pricing, and inspection planning problem for a retailer facing price-sensitive demand and stochastic supply lead-time. The fraction of nonconforming items in a received lot follows a beta distribution and the buyer considers different kinds of inspection policies that include no inspection, inspection and sampling. Moreover, a novel non-linear optimization model is developed in order to determine optimal ordering, pricing and inspection policies. An analytical solution procedure based on mathematical properties of the model is proposed to find optimal decision variables. Numerical studies are conducted in order to show the applicability of the developed model and effectiveness of the proposed algorithms.
期刊介绍:
INFOR: Information Systems and Operational Research is published and sponsored by the Canadian Operational Research Society. It provides its readers with papers on a powerful combination of subjects: Information Systems and Operational Research. The importance of combining IS and OR in one journal is that both aim to expand quantitative scientific approaches to management. With this integration, the theory, methodology, and practice of OR and IS are thoroughly examined. INFOR is available in print and online.