Optimizing inventory management for ameliorating items: incorporating preservation’s impact on deterioration and advertising-driven demand
摘要
Amelioration improves an item’s quality, while deterioration diminishes it. This study develops an integrated inventory model for products that undergo quality changes over time, focusing on enhancement rather than quantity. To enhance realism, preservation technology is integrated to slow deterioration. In real life we use many techniques such as fridge and many other chemical components which slow down the current rate of deterioration. The model incorporates preservation technology to slow deterioration, reflecting real-life techniques like refrigeration and chemical preservatives. The model also considers how product demand is influenced by both item quality and advertising frequency. Rice grain, wine and antique furniture are some examples of this pattern. Shortages are partially backlogged, and item price varies with quality which improves with time. The research aims to jointly optimize timing, preservation costs, and advertising frequency to maximize profit. It presents an iterative method for solution finding, demonstrated with a numerical example, and includes a sensitivity analysis to show how different factors affect the optimal solution.