International Journal of Research in Engineering and Applied Sciences
Year : 2017, Volume : 7, Issue : 1
First page : ( 147) Last page : ( 160)
Online ISSN : 2249-3905.

Two-echelon inventory system with advertisement policies under quadratic price dependent demand

Ritha W., Priya S. Infancy Vimal

Department of Mathematics, Holy Cross College (Autonomous), Tiruchirapalli-2 (Tamilnadu)

Online published on 8 May, 2017.

Abstract

Basically, the world is one huge supply chain. Supply Chain Management(SCM) is an essential element to operational efficiency. SCM can be performed to customer satisfaction and company success, as well as within societal settings and it can help to improve quality of life. In this context, two-echelon supply chain model is developed considering a single manufacturer and single retailer. The main objective of this paper is to demonstrate the optimality of the decision variables and objective function for respective establishments as well as for the entire chain with two kinds of advertisement policies under quadratic price dependent demand. The mathematical model is developed in two cases. First, the expression for the annual net revenue of the retailer and manufacturer is extended separately and then for the coordinated supply chain as a function of annual ordering/set up costs, carrying cost, transportation cost, screening cost, packaging cost and advertisement costs (for both television & online) with numerical examples.

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Keywords

Two-Echelon inventory system, Quadratic price dependent demand, Advertisement policies, Annual net revenue.

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