The Optimal Inventory Model For Deteriorating Items With Returns

Along with the rapid development of social economy,the enterprise face the increasingly intense competitive environment.On the one hand,returns policy is becoming more and more essential for both the consumers and the retailers.It's the consumers statutory rights to return the items back when they think it can't meet their expectations.The retailers can spur demand through generous return policy,but it will also increase their cost.On the other hand,the upgrading and updating of items has accelerated significantly with the rapid development of science and technology,Deteriorating has become an important feature of products.This paper mainly studies the retailer's inventory model combining with return policy for deteriorating items,to provides some insights for retailer decision-making.First,the researches on return and deteriorating items are reviewed and summarized.Secondly,the inventory model for deteriorating items without and with backorder is formulated.Next,suppose the retailers carry out inspection policy to screen out the deteriorated items,and we formulate a inventory model for deteriorating items with inspection policy and returns to get the optimal profit per unit time through get the the optimal amount of inspection policy and inspection time for given order quantity and order length.And then,the returns are divided into true failure and false failure,We formulate a inventory model to get the optimal per unit time profit with order quantity and order length as variables when the serviceable items and deteriorated items are sold together to the consumers.Finally,we formulate a inventory model for deteriorating items with different types of customer returns and Preservation Investment considering the preservation investment has a significant influence on deteriorating rate.The result of the nventory model for deteriorating items with inspection policy and returns shows that the retailers tend to carry out more inspections when the order quantity and deterioration increases to get a better profit;and the retailers will decreases the order quantity when the holding and inspection cost of per unit items increases.When it comes to the inventory model for deteriorating items with different types of customer returns and Preservation Investment,we know that the optimal profit of the inventory model for deteriorating items with different types of customer returns and Preservation Investment are better than the optimal of the model without Preservation Investment;and as the deteriorating rate and penalty cost of per unit deteriorating item sold to the consumers increase,the optimal preservation investment increases;while as the rate of returns for false failure increases,the optimal preservation investment decreases.