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Inventory Decisions in a Product-Updated System with Component Substitution and Product Substitution
Joint Authors
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-03-26
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Substitution behaviors happen frequently when demands are uncertain in a production inventory system, and it has attracted enough attention from firms.
Related researches can be clearly classified into firm-driven substitution and customer-driven substitution.
However, if production inventory is stock-out when a firm updates its product, the firm may use a new generation product to satisfy the customer’s demand of old generation product or use updated component to substitute old component to satisfy production demand.
Obviously, two cases of substitution exist simultaneously in the product-updated system when an emergent shortage happens.
In this paper, we consider a component order problem with component substitution and product substitution simultaneously in a product-updated system, where the case of firm-driven substitution or customer-driven substitution can be reached by setting different values for two system parameters.
Firstly, we formulate the problem into a two-stage dynamic programming.
Secondly, we give the optimal decisions about assembled quantities of different types of products.
Next, we prove that the expected profit function is jointly concave in order quantities and decrease the feasible domain by determining some bounds for decision variables.
Finally, some management insights about component substitution and product substitution are investigated by theoretical analysis method.
American Psychological Association (APA)
Zhou, Yan-cong& Sun, Junqing. 2013. Inventory Decisions in a Product-Updated System with Component Substitution and Product Substitution. Discrete Dynamics in Nature and Society،Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-448538
Modern Language Association (MLA)
Zhou, Yan-cong& Sun, Junqing. Inventory Decisions in a Product-Updated System with Component Substitution and Product Substitution. Discrete Dynamics in Nature and Society No. 2013 (2013), pp.1-9.
https://search.emarefa.net/detail/BIM-448538
American Medical Association (AMA)
Zhou, Yan-cong& Sun, Junqing. Inventory Decisions in a Product-Updated System with Component Substitution and Product Substitution. Discrete Dynamics in Nature and Society. 2013. Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-448538
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-448538