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<p>The&#xa0;supply chain&#xa0;(SC) as the most significant factor influencing competitive advantage has a great impact on the organization's life and progress. In this paper, two-stage supply chain model for imperfect production, reworking, and scrap with advertisement-price dependent demand is considered in third order equation and with three decision variables which are optimal pricing, number of deliveries, and production lot size. The novelty of this paper is (i) the number of deliveries to the customers was considered only denary in the previous studies but in this study, the number of deliveries is in integer value. (ii) only two decision variables, optimal quantity along with number of deliveries, were considered in the previous studies but three decision variables are considered in this study along with optimal pricing. Price-break-even point has been assessed, and law of demand has been verified. Price Breakeven point per unit is 2210.6234 and at this point, no profit nor nor loss. The carbon emission cost has been introduced to reduce carbon emission during stock. The primary objective is to maximize overall profitability in an imperfect production system by identifying the optimal price, delivery frequency, and production lot size. Utilizing mathematical model has been proposed for identifying optimal values for these three decision variables. The validity of the mathematical model is verified through a numerical experiment, and sensitivity analysis is conducted to examine the impact of inventory components on overall profit and to derive managerial insights. The validation of model's results was conducted using Microsoft Visual Basic-6.0 programming.</p>

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Effect of price-advertisement dependent demand in imperfect production, reworking for two-stage supply chain model: decisions on pricing, number of deliveries and lot size

  • 期刊论文

  • 发表日期：

    2026年6月27日

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  • P. M. Challapandi,
  • A. Senthilkumar,
  • S. Vijayakumar,
  • C. K. Sivashankari

摘要

The supply chain (SC) as the most significant factor influencing competitive advantage has a great impact on the organization's life and progress. In this paper, two-stage supply chain model for imperfect production, reworking, and scrap with advertisement-price dependent demand is considered in third order equation and with three decision variables which are optimal pricing, number of deliveries, and production lot size. The novelty of this paper is (i) the number of deliveries to the customers was considered only denary in the previous studies but in this study, the number of deliveries is in integer value. (ii) only two decision variables, optimal quantity along with number of deliveries, were considered in the previous studies but three decision variables are considered in this study along with optimal pricing. Price-break-even point has been assessed, and law of demand has been verified. Price Breakeven point per unit is 2210.6234 and at this point, no profit nor nor loss. The carbon emission cost has been introduced to reduce carbon emission during stock. The primary objective is to maximize overall profitability in an imperfect production system by identifying the optimal price, delivery frequency, and production lot size. Utilizing mathematical model has been proposed for identifying optimal values for these three decision variables. The validity of the mathematical model is verified through a numerical experiment, and sensitivity analysis is conducted to examine the impact of inventory components on overall profit and to derive managerial insights. The validation of model's results was conducted using Microsoft Visual Basic-6.0 programming.