An EOQ model with price-dependent supply and demand Academic Article

abstract

• 2016 Elsevier B.V.. All rights reserved. This paper considers a generalization of the Economic Order Quantity (EOQ) model for an end-item that requires an input component for production. The quantity of input components available for production is a nondecreasing function of the price offered by the producer to its suppliers, while the end-item demand is also price-dependent. We analyze the behavior of the optimal replenishment and pricing policy, which depends on the economics of production and procurement costs and the prices associated with input components and end-items. This analysis sheds light on how to deal with price-dependent supply in production planning, as well as on the value of supplier heterogeneity and information on the relationship between component price and supply.

authors

• Geunes, Joseph

published proceedings

• INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS

author list (cited authors)

• Teksan, Z. M., & Geunes, J.

citation count

• 15

complete list of authors

• Teksan, Z Melis||Geunes, Joseph

publication date

• August 2016

publisher

• Elsevier  Publisher

published in

• International Journal of Production Economics  Journal

keywords

• Price-dependent Eoq
• Production And Inventory Systems
• Supply Chain Management

Digital Object Identifier (DOI)

• 10.1016/j.ijpe.2016.04.023

start page

• 22

end page

• 33

volume

• 178

issue

• C

URL

• http://dx.doi.org/10.1016/j.ijpe.2016.04.023

user-defined tag

• 12 Responsible Consumption and Production