The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers

Research output: Contribution to conferencePaper

Abstract

We investigate a joint pricing, supplier selection, and inventory replenishment problem for a single item in a two-stage system, where multiple suppliers and one retailer are considered. Each supplier features certain capacity and quality level. Multiple orders may be placed to potential suppliers within a repeating order cycle. The demand is deterministic and sensitive to the selling price set by the retailer, which can be modeled using the logit function. In this context, we develop a mathematical model to find optimal solutions for the selling price and inventory replenishment policy, including the set of selected suppliers, order frequency, and order quantity. We further adopt a piecewise linear approximation technique to simplify the model. A numerical example is then presented to illustrate the results of the proposed model and algorithm.

Original languageEnglish (US)
Pages937-942
Number of pages6
StatePublished - Jan 1 2018
Event2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018 - Orlando, United States
Duration: May 19 2018May 22 2018

Other

Other2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018
CountryUnited States
CityOrlando
Period5/19/185/22/18

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All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

Cite this

Duan, L., Ventura, J. A., Venegas Quintrileo, B., & Li, X. (2018). The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers. 937-942. Paper presented at 2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Orlando, United States.
Duan, Lisha ; Ventura, Jose Antonio ; Venegas Quintrileo, Barbara ; Li, Xin. / The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers. Paper presented at 2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Orlando, United States.6 p.
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Duan, L, Ventura, JA, Venegas Quintrileo, B & Li, X 2018, 'The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers' Paper presented at 2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Orlando, United States, 5/19/18 - 5/22/18, pp. 937-942.

The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers. / Duan, Lisha; Ventura, Jose Antonio; Venegas Quintrileo, Barbara; Li, Xin.

2018. 937-942 Paper presented at 2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Orlando, United States.

Research output: Contribution to conferencePaper

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Duan L, Ventura JA, Venegas Quintrileo B, Li X. The application of the logit demand function in a joint pricing and inventory replenishment model with multiple suppliers. 2018. Paper presented at 2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Orlando, United States.