Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function
Numerous studies have explored pricing and lot-sizing strategies for various payment methods, but most have focused primarily on the buyer’s perspective. This study, however, approaches these strategies from a different perspective, incorporating key and relevant factors often overlooked. The volume...
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Elsevier
2024-12-01
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| Series: | Egyptian Informatics Journal |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110866524001245 |
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| author | Subhash Chandra Das Md. Al-Amin Khan Ali Akbar Shaikh Adel Fahad Alrasheedi |
| author_facet | Subhash Chandra Das Md. Al-Amin Khan Ali Akbar Shaikh Adel Fahad Alrasheedi |
| author_sort | Subhash Chandra Das |
| collection | DOAJ |
| description | Numerous studies have explored pricing and lot-sizing strategies for various payment methods, but most have focused primarily on the buyer’s perspective. This study, however, approaches these strategies from a different perspective, incorporating key and relevant factors often overlooked. The volume of sales increases when a seller accepts a buyer’s credit. However, it reduces sales volume when a seller requests a buyer make a payment in advance. To boost sales and profitability, a vendor occasionally provides a price reduction in exchange for a down payment. Demanding a down payment from a customer earns interest and carries without any risk of default. When a vendor offers customers the option to pay with credit, a higher delay payment period facility plan may boost sales volume, but it also increases the risk of default. To maximize profit per unit of time, the vendor aims to simultaneously determine the optimal selling price, replenishment schedule, and payment method. This is achieved by comparing and calculating the vendor’s profit per time unit for credit, cash, and advance payment options. This is done by comparing and calculating the seller’s profit for each piece of time for credit, cash, and advance payments. The following managerial impacts are highlighted by means of numerical analyses: (1) A particular payment type, among the three available options, yields the seller’s highest profit under certain conditions. (2) It is vitally crucial for a vendor to provide a price reduction if an advance payment is required. (3) Advance payment results in higher profit than delayed payment if sales volume does not significantly fall while switching from credit to advance payments, or vice versa. To solve the optimization problem, a popular metaheuristic algorithm (viz., Grey Wolf Optimizer) is used and finally performed a post optimality analysis for making a fruitful conclusion. |
| format | Article |
| id | doaj-art-6607b8c6ae2842da92f920d366a3dd21 |
| institution | OA Journals |
| issn | 1110-8665 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Egyptian Informatics Journal |
| spelling | doaj-art-6607b8c6ae2842da92f920d366a3dd212025-08-20T01:56:20ZengElsevierEgyptian Informatics Journal1110-86652024-12-012810056110.1016/j.eij.2024.100561Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness functionSubhash Chandra Das0Md. Al-Amin Khan1Ali Akbar Shaikh2Adel Fahad Alrasheedi3Department of Mathematics, Chandrapur College, Chandrapur, West Bengal, IndiaDepartment of Mathematics, Jahangirnagar University, Savar, Dhaka 1342, Bangladesh; Tecnologico de Monterrey, School of Engineering and Sciences, Ave. Eugenio Garza Sada 2501, Monterrey, NL 64849, MéxicoDepartment of Mathematics, The University of Burdwan, Burdwan 713104, India; Corresponding author.Department of Statistics and Operations Research, College of Science, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi ArabiaNumerous studies have explored pricing and lot-sizing strategies for various payment methods, but most have focused primarily on the buyer’s perspective. This study, however, approaches these strategies from a different perspective, incorporating key and relevant factors often overlooked. The volume of sales increases when a seller accepts a buyer’s credit. However, it reduces sales volume when a seller requests a buyer make a payment in advance. To boost sales and profitability, a vendor occasionally provides a price reduction in exchange for a down payment. Demanding a down payment from a customer earns interest and carries without any risk of default. When a vendor offers customers the option to pay with credit, a higher delay payment period facility plan may boost sales volume, but it also increases the risk of default. To maximize profit per unit of time, the vendor aims to simultaneously determine the optimal selling price, replenishment schedule, and payment method. This is achieved by comparing and calculating the vendor’s profit per time unit for credit, cash, and advance payment options. This is done by comparing and calculating the seller’s profit for each piece of time for credit, cash, and advance payments. The following managerial impacts are highlighted by means of numerical analyses: (1) A particular payment type, among the three available options, yields the seller’s highest profit under certain conditions. (2) It is vitally crucial for a vendor to provide a price reduction if an advance payment is required. (3) Advance payment results in higher profit than delayed payment if sales volume does not significantly fall while switching from credit to advance payments, or vice versa. To solve the optimization problem, a popular metaheuristic algorithm (viz., Grey Wolf Optimizer) is used and finally performed a post optimality analysis for making a fruitful conclusion.http://www.sciencedirect.com/science/article/pii/S1110866524001245Interval valued inventory modelAdvance-Credit-Cash paymentGreen productGrey Wolf optimizer |
| spellingShingle | Subhash Chandra Das Md. Al-Amin Khan Ali Akbar Shaikh Adel Fahad Alrasheedi Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function Egyptian Informatics Journal Interval valued inventory model Advance-Credit-Cash payment Green product Grey Wolf optimizer |
| title | Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function |
| title_full | Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function |
| title_fullStr | Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function |
| title_full_unstemmed | Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function |
| title_short | Interval valued inventory model with different payment strategies for green products under interval valued Grey Wolf optimizer Algorithm fitness function |
| title_sort | interval valued inventory model with different payment strategies for green products under interval valued grey wolf optimizer algorithm fitness function |
| topic | Interval valued inventory model Advance-Credit-Cash payment Green product Grey Wolf optimizer |
| url | http://www.sciencedirect.com/science/article/pii/S1110866524001245 |
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