Profitability index maximization in an inventory model with a price- and stock-dependent demand rate in a power-form
Autor: | Joaquín Sicilia, David Alcaide-López-de-Pablo, Luis A. San-José, Valentín Pando |
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Jazyk: | angličtina |
Rok vydání: | 2021 |
Předmět: |
TheoryofComputation_MISCELLANEOUS
Scale (ratio) Administracion de empresas General Mathematics 0211 other engineering and technologies 02 engineering and technology Inventory control - Mathematical models inventory models 0502 economics and business Computer Science (miscellaneous) Econometrics QA1-939 Sensitivity (control systems) Gestión de existencias - Modelos matemáticos Engineering (miscellaneous) Stock (geology) Mathematics 021103 operations research profitability index maximization 12 Matemáticas 05 social sciences Holding cost Demanda dependiente del precio y de las existencias Maximization Investment (macroeconomics) Applied mathematics Price- and stock-dependent demand Industrial Management isoelastic price-dependent demand Gestión de existencias Profit Profitability index Scale parameter 050203 business & management |
Zdroj: | Mathematics Volume 9 Issue 10 Mathematics, Vol 9, Iss 1157, p 1157 (2021) |
DOI: | 10.3390/math9101157 |
Popis: | Producción Científica 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. Ministerio de Ciencia, Innovación y Universidades y Fondo Europeo de Desarrollo Regional (FEDER) - (project MTM2017-84150-P) |
Databáze: | OpenAIRE |
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