An economic production quantity model for an imperfect production system with selling price, advertisement frequency and green-level dependent demand

IF 3.7 4区 管理学 Q2 BUSINESS Electronic Commerce Research Pub Date : 2024-03-01 DOI:10.1007/s10660-024-09822-9
Mostafijur Rahaman, Shariful Alam, Rakibul Haque, Ali Akbar Shaikh, Pradeep Kumar Behera, Sankar Prasad Mondal
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Abstract

The consumer’s demand for certain products must be grown through frequent promotion. Also, maintaining the green level of the products can catch customers’ attention. The demand can be boosted by lowering the selling price per unit quantity. These essential issues should be considered while modelling the demand function for a production-retail scenario. The production of commodities cannot be error-free. A small part of the production may be imperfect, and the rate of the imperfect output must be increased as time forwards. The production cost increases as the advertisement frequency, maintenance of green level advances, and time forwards. The inventory carrying cost per unit product also hikes with time. This paper presents a comprehensive inventory optimization model, including the mentioned issues in its hypotheses. The result shows that the average profit is significantly sensitive to the selling price and production cost per unit. The resultant managerial insights after solving the proposed model are as follows. First, the average profit increases with the selling price hike and frequent advertisement. Second, the green level cannot increase average profit, though it causes surplus demand, because maintaining green levels of items incurs additional costs. Third, accumulating defective items during production diminishes average profit as the sellable products are lowered.

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具有销售价格、广告频率和绿色需求的不完全生产系统的经济生产量模型
消费者对某些产品的需求必须通过频繁的促销活动来增加。此外,保持产品的绿色环保水平也能吸引消费者的注意。可以通过降低单位数量的销售价格来促进需求。在建立生产-零售情景的需求函数模型时,应考虑这些基本问题。商品生产不可能毫无差错。一小部分生产可能是不完美的,随着时间的推移,不完美的产出率必须提高。生产成本会随着广告频率、绿色水平的提高和时间的推移而增加。单位产品的库存成本也会随着时间的推移而增加。本文提出了一个综合库存优化模型,并将上述问题纳入模型假设中。结果表明,平均利润对销售价格和单位生产成本非常敏感。在求解所提出的模型后,得出的管理启示如下。首先,平均利润会随着销售价格的上涨和频繁的广告宣传而增加。第二,绿色水平虽然会导致需求过剩,但并不能增加平均利润,因为维持绿色水平会产生额外成本。第三,生产过程中累积的次品会降低可销售产品的数量,从而减少平均利润。
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来源期刊
CiteScore
7.50
自引率
12.80%
发文量
99
期刊介绍: The Internet and the World Wide Web have brought a fundamental change in the way that individuals access data, information and services. Individuals have access to vast amounts of data, to experts and services that are not limited in time or space. This has forced business to change the way in which they conduct their commercial transactions with their end customers and with other businesses, resulting in the development of a global market through the Internet. The emergence of the Internet and electronic commerce raises many new research issues. The Electronic Commerce Research journal will serve as a forum for stimulating and disseminating research into all facets of electronic commerce - from research into core enabling technologies to work on assessing and understanding the implications of these technologies on societies, economies, businesses and individuals. The journal concentrates on theoretical as well as empirical research that leads to better understanding of electronic commerce and its implications. Topics covered by the journal include, but are not restricted to the following subjects as they relate to the Internet and electronic commerce: Dissemination of services through the Internet;Intelligent agents technologies and their impact;The global impact of electronic commerce;The economics of electronic commerce;Fraud reduction on the Internet;Mobile electronic commerce;Virtual electronic commerce systems;Application of computer and communication technologies to electronic commerce;Electronic market mechanisms and their impact;Auctioning over the Internet;Business models of Internet based companies;Service creation and provisioning;The job market created by the Internet and electronic commerce;Security, privacy, authorization and authentication of users and transactions on the Internet;Electronic data interc hange over the Internet;Electronic payment systems and electronic funds transfer;The impact of electronic commerce on organizational structures and processes;Supply chain management through the Internet;Marketing on the Internet;User adaptive advertisement;Standards in electronic commerce and their analysis;Metrics, measurement and prediction of user activity;On-line stock markets and financial trading;User devices for accessing the Internet and conducting electronic transactions;Efficient search techniques and engines on the WWW;Web based languages (e.g., HTML, XML, VRML, Java);Multimedia storage and distribution;Internet;Collaborative learning, gaming and work;Presentation page design techniques and tools;Virtual reality on the net and 3D visualization;Browsers and user interfaces;Web site management techniques and tools;Managing middleware to support electronic commerce;Web based education, and training;Electronic journals and publishing on the Internet;Legal issues, taxation and property rights;Modeling and design of networks to support Internet applications;Modeling, design and sizing of web site servers;Reliability of intensive on-line applications;Pervasive devices and pervasive computing in electronic commerce;Workflow for electronic commerce applications;Coordination technologies for electronic commerce;Personalization and mass customization technologies;Marketing and customer relationship management in electronic commerce;Service creation and provisioning. Audience: Academics and professionals involved in electronic commerce research and the application and use of the Internet. Managers, consultants, decision-makers and developers who value the use of electronic com merce research results. Special Issues: Electronic Commerce Research publishes from time to time a special issue of the devoted to a single subject area. If interested in serving as a guest editor for a special issue, please contact the Editor-in-Chief J. Christopher Westland at westland@uic.edu with a proposal for the special issue. Officially cited as: Electron Commer Res
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