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Article

Consumption Coupons, Consumption Probability and Inventory Optimization: An Improved Minimum-Cost Maximum-Flow Approach

1
School of Business and Administration, Ningbo Polytechnic, Ningbo 315800, China
2
The Dean’s Office, Ningbo Polytechnic, Ningbo 315800, China
*
Author to whom correspondence should be addressed.
Sustainability 2022, 14(13), 7759; https://doi.org/10.3390/su14137759
Submission received: 16 May 2022 / Revised: 17 June 2022 / Accepted: 21 June 2022 / Published: 25 June 2022

Abstract

The issuance of consumption coupons during the epidemic period to stimulate the economy must take full account of the level of probabilistic consumption and inventory optimization. In this paper, an improved minimum-cost maximum-flow model is constructed to dynamically adjust the inventory capacity of node enterprises with the change of probabilistic consumption level, and three scenarios are simulated by numerical assumptions. The results show that: (1) The model can better solve the problem of consumption coupons, probabilistic consumption and inventory optimization; (2) Consumer welfare remains unchanged, the largest number of government consumption coupons is issued, and the number of enterprise inventories reaches the lowest; (3) Enterprise inventories are minimized with different decisions on consumer probability consumption, and the government’s issuance of consumption coupons and the satisfaction of consumer demand have reached a dynamic balance. Corresponding suggestions are put forward, hoping to better help the government to implement the consumption coupons policy to stimulate the economy.
Keywords: consumption coupons; purchase probability; inventory optimization; minimum-cost maximum-flow consumption coupons; purchase probability; inventory optimization; minimum-cost maximum-flow

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MDPI and ACS Style

Wang, S.; Chen, Y. Consumption Coupons, Consumption Probability and Inventory Optimization: An Improved Minimum-Cost Maximum-Flow Approach. Sustainability 2022, 14, 7759. https://doi.org/10.3390/su14137759

AMA Style

Wang S, Chen Y. Consumption Coupons, Consumption Probability and Inventory Optimization: An Improved Minimum-Cost Maximum-Flow Approach. Sustainability. 2022; 14(13):7759. https://doi.org/10.3390/su14137759

Chicago/Turabian Style

Wang, Shunlin, and Yifang Chen. 2022. "Consumption Coupons, Consumption Probability and Inventory Optimization: An Improved Minimum-Cost Maximum-Flow Approach" Sustainability 14, no. 13: 7759. https://doi.org/10.3390/su14137759

APA Style

Wang, S., & Chen, Y. (2022). Consumption Coupons, Consumption Probability and Inventory Optimization: An Improved Minimum-Cost Maximum-Flow Approach. Sustainability, 14(13), 7759. https://doi.org/10.3390/su14137759

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