INVENTORY DECISIONS WITH DECREASING PURCHASING COSTS

Author:

HU XIANGPEI1,WANG HUIMIN2,WANG YUNZENG3

Affiliation:

1. School of Management, Dalian University of Technology, Dalian, P. R. China

2. The Business School, Hohai University, Nanjing, P. R. China

3. The School of Business Administration, University of California, Riverside, CA 92521, USA

Abstract

Costs of many items drop systematically throughout their life-cycles, due to advances in technology and competition. Motivated by the management of service parts for some high-tech products, this paper studies inventory decisions for such items. In a periodic review setting with stochastic demand, we model the purchasing costs of successive periods as a stochastic and decreasing sequence. Unit selling price of the item is determined as some mark-up of the purchasing cost and, hence, will change over time as well. We consider two specific mark-up models: (1) purchasing cost plus constant-dollar-amount mark-up, and (2) purchasing cost plus constant-percentage mark-up. To maximize the total discounted expected profit, we derive conditions under which myopic policies are optimal for the systems.

Publisher

World Scientific Pub Co Pte Lt

Subject

Management Science and Operations Research,Management Science and Operations Research

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Spare Parts Varieties Optimization for Hydraulic System Using Data Envelopment Analysis Method;2023 Global Reliability and Prognostics and Health Management Conference (PHM-Hangzhou);2023-10-12

2. Data-Driven Iron and Steel Inventory Control Policies;Mathematics;2019-08-07

3. Optimization of EOQ Model for New Products Under Multi-Stage Adoption Process;International Journal of Innovation and Technology Management;2019-04

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3