A study of optimal selling quantity and return rate for intermediary firms

• Main Authors: Jing-Hui Yang, 楊景卉
• Other Authors: Cheng−Kang Chen
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/fc9ug5

碩士 === 國立臺灣科技大學 === 資訊管理系 === 106 === Intermediary firms are organizations that purchase products from many small producers and sell those purchased products to other companies, so intermediary firms have the ability to determine the purchase price in the supply chain. On the other hand, Intermediary firms also recycle used products from customers and sell those used products to upstream producers to reduce waste of resources. The 1991 paper entitled "Optimal Sales Quantity and Purchasing Price of Intermediate Firms" proposed optimal intermediary firm business behavior in the condition that the product quality is perfect or imperfect and achieved the minimum cost and the maximum profit. We extend Chen et al (1991) to consider product recycle and the inventory cost of used or defective products. This paper uses the selling quantity, purchasing price, return rate of used products and the cycles number of used or defective products as decision variables to establish profitability optimization models for intermediary firms. Without used or defective products inventory cost models can obtain a global optimal closed-form solution derived from the inventory model by utilizing geometric programming techniques and Other models solve the optimization problem by an iterative algorithm. At the end of every model has the numerical analysis is applied to demonstrate the features of the models and the algorithms.