Pricing Decision within an Inventory Model for Complementary and Substitutable Products
A combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and invent...
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MDPI AG
2019-06-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/7/7/568 |
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doaj-4eb3fd3df06e44b49b33dff30ba790142020-11-25T00:22:51ZengMDPI AGMathematics2227-73902019-06-017756810.3390/math7070568math7070568Pricing Decision within an Inventory Model for Complementary and Substitutable ProductsAta Allah Taleizadeh0Masoumeh Sadat Babaei1Shib Sankar Sana2Biswajit Sarkar3School of Industrial Engineering, College of Engineering, University of Tehran, Tehran 456311155, IranDepartment of Industrial Engineering, Islamic Azad University, South Tehran Branch, Tehran 1584743311, IranPrincipal, Kishore Bharati Bhagini Nivedita College, Ramkrishna Sarani, Behala, Kolkata 700060, IndiaDepartment of Industrial & Management Engineering, Hanyang University, Ansan, Gyeonggi-do 15588, KoreaA combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and inventory decisions for complementary and substitutable items which are deteriorating in nature. Four models are analyzed where the demand of one product is dependent upon the selling price and the price of another product. This paper tries to compute the optimum prices and order quantities to optimize the total profit, which is the main aim. Theoretically, this model is solved by a classical optimization method. Numerical examples demonstrate the applicability of this model. Results conclude that the total profit is dependent on the degree of substitutability and complementarity. A sensitivity analysis of optimal solutions is given to test the stability of the proposed model.https://www.mdpi.com/2227-7390/7/7/568inventorypricingcomplementary productssubstitutable productsdeterioration |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Ata Allah Taleizadeh Masoumeh Sadat Babaei Shib Sankar Sana Biswajit Sarkar |
| spellingShingle |
Ata Allah Taleizadeh Masoumeh Sadat Babaei Shib Sankar Sana Biswajit Sarkar Pricing Decision within an Inventory Model for Complementary and Substitutable Products Mathematics inventory pricing complementary products substitutable products deterioration |
| author_facet |
Ata Allah Taleizadeh Masoumeh Sadat Babaei Shib Sankar Sana Biswajit Sarkar |
| author_sort |
Ata Allah Taleizadeh |
| title |
Pricing Decision within an Inventory Model for Complementary and Substitutable Products |
| title_short |
Pricing Decision within an Inventory Model for Complementary and Substitutable Products |
| title_full |
Pricing Decision within an Inventory Model for Complementary and Substitutable Products |
| title_fullStr |
Pricing Decision within an Inventory Model for Complementary and Substitutable Products |
| title_full_unstemmed |
Pricing Decision within an Inventory Model for Complementary and Substitutable Products |
| title_sort |
pricing decision within an inventory model for complementary and substitutable products |
| publisher |
MDPI AG |
| series |
Mathematics |
| issn |
2227-7390 |
| publishDate |
2019-06-01 |
| description |
A combination of substitutable and complementary products is very important for any business industry to make all-round profit from different aspects. How deterioration affects complementary products or substitutable products is discussed in this study. This study investigates the pricing and inventory decisions for complementary and substitutable items which are deteriorating in nature. Four models are analyzed where the demand of one product is dependent upon the selling price and the price of another product. This paper tries to compute the optimum prices and order quantities to optimize the total profit, which is the main aim. Theoretically, this model is solved by a classical optimization method. Numerical examples demonstrate the applicability of this model. Results conclude that the total profit is dependent on the degree of substitutability and complementarity. A sensitivity analysis of optimal solutions is given to test the stability of the proposed model. |
| topic |
inventory pricing complementary products substitutable products deterioration |
| url |
https://www.mdpi.com/2227-7390/7/7/568 |
| work_keys_str_mv |
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