Retailer’s inventory pricing policies under service facility and promotional efforts with all-unit discounts on linked-to-order partial advance payment
摘要
In today’s intensely competitive marketing setting, effective cash flow management is critical to success. To effectively handle these hurdles, suppliers frequently provide retailers a variety of strategic benefits across multiple product categories. These advantages may include price reductions, extended credit durations, and installment options subject to specific terms and limits. Furthermore, retailers employed various marketing strategies, including promotional efforts and service facilities, to boost the demand for their products. This study offers a profitable strategy for the retail sector by considering a number of factors, including pricing, service quality, and promotions that impact consumer demand. The main objective of the suggested study is that the maximization of the retailer’s profit by optimizing advertisement cost, service facility investment, and cycle time. The optimal solutions of the suggested model are validated by presenting numerical illustration using a novel algorithm. Furthermore, to show the uniqueness of the algorithm and to find some useful insights for managers a sensitivity analysis is carried out on the major parameters in the suggested study. Ultimately, this study integrates important managerial discoveries to assist retailer and store managers in developing operational strategies that maximize profits while maintaining optimal service facilities and promotional efforts.