Transportation-Inventory Model for Electronic Markets Under Time Varying Demand, Retailer’s Incentives and Product Exchange Scheme

  • Arindum MukhopadhyayEmail author
Part of the Asset Analytics book series (ASAN)


Exchange offers are popular in many businesses to attract new customers. Availability of novel varieties, stiff competition, and regulatory restriction of discarding old products enhances to facilitate such offers in the market. Although, the reduction of out-of-pocket expenses to the customers helps to increase the sale of products; it also elevates the decision problem for managing the inventories of the exchanged products for the retailers. In view of this, the present article addresses inventory decision modeling in a system where a customer can buy products from the electronic-market retailer either by paying the full price or getting some price-discount for exchanging old products. Retailer bears transportation costs for the new and exchanged products. Four models are formulated and numerical examples are presented. Sensitivity analysis is also performed to understand the effect of various parameters in the models.


Exchange offer Inventory Time varying demand Transportation Optimization 


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© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Operations and Quantitative Techniques AreaIndian Institute of Management ShillongShillongIndia

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