Optimal Decision Of Components Ordering For The Substitutable And Perishable Products

With the rapid development of technology and economic,consumer demand for product tends to be individualized and diversified,many kinds of the products that used to be durable goods,for examples,mobile phone,computer,digital product,etc.,appear the following perishable characteristics such as shorter selling cycle,higher demand volatility and randomness,low salvage value at the end of the sale cycle.In addition,with the consumer demand becoming diversified,the dependency or loyalty on a kind of products is coming down.As a result,the uncertainty about the market demand for these perishable products is growing stronger.So,it is crucial how to make decision on the order sizes of the products and products' components in order to meet the uncertain market demand for the dealer which assembles and sells the perishable goods,it is an important issue related to the survival of the enterprise and determines whether the enterprise has a long-term development.So,the dealer must make scientific decision on product's components in order to satisfy better the market demand,improve the rate of customer satisfaction and occupy a bigger share of the market,at the same time get more profits.Therefore,this paper investigates the optimal decision of component ordering for a dealer which assembles and sells the substitutable and perishable product composed of two types of components.The details are elaborated as follows:The problem of the optimal decision of component ordering for a kind of perishable product is investigated.In the case of uncertain product demand,a discrete stochastic optimization model,which takes maximizing its expectation of net income as its objective and use satisfaction rate of the customer requirement as the stochastic constraint,is proposed for the ordering sizes of two kinds of components of perishable product.The problem of optimally deciding ordering sizes of two kinds of components of the perishable product with and without the stochastic constraint are discussed.It is proved that the existence of the optimal solution and a series of properties.On the base of these properties,the formula of the optimal ordering sizes and the algorithm of finding the optimal solution are designed.The problem of the optimal decision of component ordering for the two kinds of substitutable and perishable product is investigated.In the case of random product demand,when the dealer encounter old product out of stock,they can use hybrid product or new product to meet the demand of old product user.A discrete stochastic optimization model,which takes maximizing its expectation of net income as its objective and use satisfaction rate of the customer demands as the stochastic constraints and in which the substitutable strategy,is taken into account,is proposed for the ordering sizes of the two kinds of substitutable and perishable products by extending the discrete stochastic optimization model of order sizes for a kind of perishable product.A series of properties of the optimal solution to the problem are shown.On the basis of properties,the search algorithms of finding the optimal solution with and without random constraints are given.Finally,the algorithms are implemented by using MATLAB.Some simulated data cases are applied to verify the validity of the algorithm and the method proposed in this paper.By analyzing the results of the experiment,we obtain the following significant management insights: In the case of random product demand,when the old product is out of stock,the dealer gain benefits from adopting substitutable strategy.On the one hand,adopting the substitutable strategy can increase the dealer's expectation of net income and improve the rate of customer satisfaction.On the other hand,it can help the new product to replace the old product quickly for the purpose of occupying the share of the market and accelerate the old product exit the market,which plays a positive role in accelerating innovation of enterprises.