In traditional inventory models, the demand rate normally is considered as a constant value, while in marketing and pricing, it is dependent on the selling price. The present study introduces a new type of economic production quantity (EPQ) inventory model. This production-inventory model is among the aspects that make the management of inventories more realistic and practical for managers. The pricing policy, planned backorders, and the rework process are included in the EPQ inventory model. The main contribution is that, in the EPQ inventory model, the price serves as a critical factor that affects the size of demand to maximize total long-term profit. The primarily objective is to determine the optimum selling price, discrete values for the optimal lot size, and the level of optimal backorders so that the total profit is maximized. To accomplish the optimal value for the decision variables an algorithm is developed. The proposed algorithm provides an accurate solution for production managers to jointly decide on lot size, backorder size, and selling price. In addition, a numerical example is solved using real industry data. The results affirm that the total profit obtained using the production-inventory model increases significantly in comparison with the current situation. Furthermore, sensitivity analysis is carried out in order to describe the practical application of the suggested production-inventory model.
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页码:803 / 819
页数:17
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Gharaei A., 2021, Int. J. Syst. Sci. Oper. Logistics, P1
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Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
Glock, Christoph H.
Grosse, Eric H.
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Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
Grosse, Eric H.
Ries, Joerg M.
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Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
机构:
Korea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
Hong, Ki-sung
Lee, Chulung
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Korea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Korea Univ, Grad Sch Management Technol, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
机构:
Korea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Hong, Ki-sung
Yeo, Sang Soo
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Mokwon Univ, Div Comp Engn, Taejon 302729, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Yeo, Sang Soo
Kim, Hyoung Joong
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Korea Univ, Grad Sch Informat Secur, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Kim, Hyoung Joong
Chew, Ek Peng
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Natl Univ Singapore, Dept Ind & Syst Engn, Singapore 119260, SingaporeKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Chew, Ek Peng
Lee, Chulung
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h-index: 0
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Korea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Korea Univ, Grad Sch Management Technol, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
机构:
Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
Glock, Christoph H.
Grosse, Eric H.
论文数: 0引用数: 0
h-index: 0
机构:
Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
Grosse, Eric H.
Ries, Joerg M.
论文数: 0引用数: 0
h-index: 0
机构:
Tech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, GermanyTech Univ Darmstadt, Dept Law & Econ, Carlo & Karin Giersch Endowed Chair Business Mana, D-64289 Darmstadt, Germany
机构:
Korea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
Hong, Ki-sung
Lee, Chulung
论文数: 0引用数: 0
h-index: 0
机构:
Korea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Korea Univ, Grad Sch Management Technol, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
机构:
Korea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Hong, Ki-sung
Yeo, Sang Soo
论文数: 0引用数: 0
h-index: 0
机构:
Mokwon Univ, Div Comp Engn, Taejon 302729, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Yeo, Sang Soo
Kim, Hyoung Joong
论文数: 0引用数: 0
h-index: 0
机构:
Korea Univ, Grad Sch Informat Secur, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Kim, Hyoung Joong
Chew, Ek Peng
论文数: 0引用数: 0
h-index: 0
机构:
Natl Univ Singapore, Dept Ind & Syst Engn, Singapore 119260, SingaporeKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Chew, Ek Peng
Lee, Chulung
论文数: 0引用数: 0
h-index: 0
机构:
Korea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Korea Univ, Grad Sch Management Technol, Seoul 136713, South KoreaKorea Univ, Div Ind Management Engn, Seoul 136713, South Korea