Optimal Ordering and Pricing Decision for Items Following Price Sensitive Quadratic Demand Under Combined Payment Scheme

  • Azharuddin Shaikh Institute of Management, Nirma University, Sarkhej-Gandhinagar Highway, Ahmedabad-382481, India
  • Poonam Mishra Department of Mathematics, School of Technology, Pandit Deendayal Energy University, Raisan, Gandhinagar-382007, India
  • Isha Talati Department of Physical Science, Institute of Advance Research, Koba Institutional Area, Gandhinagar-382426, India
DOI: https://doi.org/10.2298/YJOR210715010S

Abstract

Three types of payments confront in business dealings viz. advance, cash and credit. A cash payment is ubiquitously practiced, while a credit payment scheme escalates sales and advance payment technique is implemented to avoid cancellation of orders. These are recognized as advance-cash-credit (ACC) payment scheme which is conventional in business transactions. By implicating ACC the aim is to determine optimal pricing and ordering policies. Inventory items observes quadratic demand being sensitive to unit selling price. Promising concavity of the profit function for both selling price and cycle time is posed numerically. Managerial insights are revealed as a concluding note.

Author Biographies

Poonam Mishra, Department of Mathematics, School of Technology, Pandit Deendayal Energy University, Raisan, Gandhinagar-382007, India
  1. Poonam Mishra working as associate professor at School of Technology, PDEU,  has completed her Ph.D in the year 2010 in the area of Applied Mathematics. She also holds master degree in business administration with specialization in Operations Management. Her core research area is modelling and formulation of inventory and supply chain management. She has applied concepts of modelling and optimization in various fields such as for crude oil exploration, for sea ice route optimization problems and impact of wind power forecasts on revenue insufficiency issue of electricity markets. She has successfully guided 03 students to earn their Ph.D. degree. She has more than 40 journal publications and 8 book chapters in various international journals of repute. She is author of the book titled “Non – Linear Programming”. She has successfully completed a funded project form SAC – ISRO and currently working on another funded project - Remote Sensing Investigation of Parameters that Affect Glacial Lake Outburst Flood (GLOF).
Isha Talati, Department of Physical Science, Institute of Advance Research, Koba Institutional Area, Gandhinagar-382426, India

Assistant Professor, Department of Physical Science, Institute of Advance Research, Koba
Institutional Area, Gandhinagar-382426, India

Published
2022-05-08
How to Cite
SHAIKH, Azharuddin; MISHRA, Poonam; TALATI, Isha. Optimal Ordering and Pricing Decision for Items Following Price Sensitive Quadratic Demand Under Combined Payment Scheme. Yugoslav Journal of Operations Research, [S.l.], v. 33, n. 1, p. 41-58, may 2022. ISSN 2334-6043. Available at: <https://yujor.fon.bg.ac.rs/index.php/yujor/article/view/1015>. Date accessed: 04 dec. 2024. doi: https://doi.org/10.2298/YJOR210715010S.
Citation Formats
Issue
Vol 33 No 1 (2023)
Section
Research Articles
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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