TWO-PHASE PRICING AND ORDERING DECISIONS UNDER TRADE CREDIT
In this paper, we consider an integrated inventory model with a price sensitive demand rate, where the demand during the out-of-stock period is partially backordered. Also, a trade credit period is provided from supplier to retailer. By analyzing the total net profit function, we present an algorithm to determine the optimal selling price, the length of replenishment cycle, and demand's percentage that will be filled from stock. Specially, we consider two-phases pricing, it means that we determine the optimal selling price for in-stock period and optimal selling price for out-stock period. A numerical study is used to illustrate the solution procedure and to discuss the company behavior with different parameter values. The result also explains that two-phases pricing strategy is supreme to one-phase pricing strategy while obtaining the maximum profit.
Operations in unit-load warehouses include single-command cycles and dual-command cycles, where storage and retrieval operations are interleaved. We model dual-command travel in two warehouse layouts that occur commonly in industry, and compare the efficiency of the two designs. General guidelines for optimizing the two aisle layouts are provided.