Por favor, use este identificador para citar o enlazar este ítem:https://uvadoc.uva.es/handle/10324/59733
Título
Profitability index maximization in an inventory model with a price- and stock-dependent demand rate in a power-form
Autor
Año del Documento
2021
Editorial
MDPI
Descripción
Producción Científica
Documento Fuente
Mathematics, 2021, Vol. 9, Nº. 10, 1157
Abstract
This paper presents the optimal policy for an inventory model where the demand rate potentially depends on both selling price and stock level. The goal is the maximization of the profitability index, defined as the ratio income/expense. A numerical algorithm is proposed to calculate the optimal selling price. The optimal values for the depletion time, the cycle time, the maximum profitability index, and the lot size are evaluated from the selling price. The solution shows that the inventory must be replenished when the stock is depleted, i.e., the depletion time is always equal to the cycle time. The optimal policy is obtained with a suitable balance between ordering cost and holding cost. A condition that ensures the profitability of the financial investment in the inventory is established from the initial parameters. Profitability thresholds for several parameters, including the scale and the non-centrality parameters, keeping all the others fixed, are evaluated. The model with an isoelastic price-dependent demand is solved as a particular case. In this last model, all the optimal values are given in a closed form, and a sensitivity analysis is performed for several parameters, including the scale parameter. The results are illustrated with numerical examples.
Materias (normalizadas)
Inventory control - Mathematical models
Gestión de existencias - Modelos matemáticos
Gestión de existencias
Industrial Management
Administracion de empresas
Profit
Applied mathematics
Materias Unesco
12 Matemáticas
Palabras Clave
Price- and stock-dependent demand
Demanda dependiente del precio y de las existencias
ISSN
2227-7390
Revisión por pares
SI
Patrocinador
Ministerio de Ciencia, Innovación y Universidades y Fondo Europeo de Desarrollo Regional (FEDER) - (project MTM2017-84150-P)
Version del Editor
Propietario de los Derechos
© 2021 The authors
Idioma
eng
Tipo de versión
info:eu-repo/semantics/publishedVersion
Derechos
openAccess
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