An Economic Order Quantity Model for Bundling Items with Probabilistic Demand

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dc.contributor.author Abboud, Elise
dc.date.accessioned 2022-04-26T06:34:38Z
dc.date.available 2022-04-26T06:34:38Z
dc.date.copyright 2020 en_US
dc.date.issued 2020-05-18
dc.identifier.uri http://hdl.handle.net/10725/13506
dc.description.abstract The purpose of this study is to investigate the extension of the classical Economic Order Quantity (EOQ) model to the problem of bundling two or more products. In particular, we examine the case whereby a wholesaler sells bundled items consist-ing of multiple products. The wholesaler is concerned with determining the order size from each supplier and the time of placing the order. The products are received in lots at the beginning of each inventory cycle and combined into bundles con-taining one item of each type. It is assumed that the wholesaler adopts a pure bun-dling strategy whereby only bundled items are sold to retailers. Several inventory scenarios are considered in this thesis. For each scenarios, a mathematical model is formulated and used to derive the optimal order quantity. An explicit expression for the optimal quantity is obtained. First, bundling two types of products of per-fect quality is considered while assuming that the lead times are zero. Then, the model is generalized to the case of bundling more than two types of products. The effect of nonzero constant lead times is incorporated into each of the previously examined models. In each case, the wholesaler’s optimal ordering policy consist-ing of the optimal ordering quantity along with the reordering points is obtained. Finally, the underlying assumption of a constant demand rate is relaxed whereby the demand during lead time is considered as a random variable with a known probability distribution. In this case, the wholesaler’s optimal ordering policy is obtained by calculating the optimal ordering quantity, the reordering points, and the safety stock of each type of product needed to attain a required service level. Numerical examples illustrating the computations of the optimal solution are provided. en_US
dc.language.iso en en_US
dc.subject Purchasing -- Mathematical models en_US
dc.subject Supply-side economics -- Mathematical models en_US
dc.subject Operations research -- Mathematical methods en_US
dc.subject Lebanese American University -- Dissertations en_US
dc.subject Dissertations, Academic en_US
dc.title An Economic Order Quantity Model for Bundling Items with Probabilistic Demand en_US
dc.type Thesis en_US
dc.term.submitted Spring en_US
dc.author.degree MBA en_US
dc.author.school SOB en_US
dc.author.idnumber 201506315 en_US
dc.author.commembers Yunis, Manal
dc.author.commembers El Khalil, Raed
dc.author.department Information Technology And Operations Management en_US
dc.description.physdesc 1 online resource (ix, 58 leaves) : ill. en_US
dc.author.advisor Kassar, Abdul-Nasser
dc.keywords Economic Order Quantity en_US
dc.keywords Bundling Items en_US
dc.keywords Lead Time en_US
dc.keywords Optimal Order Quantity en_US
dc.keywords Optimal Solution en_US
dc.keywords Probabilistic Demand en_US
dc.keywords Perfect Quality en_US
dc.description.bibliographiccitations Includes bibliographical references (leaf 56-58) en_US
dc.identifier.doi https://doi.org/10.26756/th.2022.297
dc.author.email elise.abboud@lau.edu en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/thesis.php en_US
dc.publisher.institution Lebanese American University en_US
dc.author.affiliation Lebanese American University en_US

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