Optimal trade-credit policy for perishable items deeming imperfect production and stock dependent demand
Trade credit is the most succeeding economic phenomenon which is used by the supplier for encouraging the retailers to buy more quantity. In this article, a mathematical model with stock dependent demand and deterioration is developed to investigate the retailer’s optimal inventory policy under the...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2014-01-01
|
| Series: | International Journal of Industrial Engineering Computations |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ijiec/Vol5/IJIEC_2013_35.pdf |
| Summary: | Trade credit is the most succeeding economic phenomenon which is used by the supplier for encouraging the retailers to buy more quantity. In this article, a mathematical model with stock dependent demand and deterioration is developed to investigate the retailer’s optimal inventory policy under the scheme of permissible delay in payment. It is assumed that defective items are produced during the production process and delay period is progressive. The objective is to minimize the total average cost of the system. To exemplify hypothesis of the proposed model numerical examples and sensitivity analysis are provided. Finally, the convexities of the cost functions and the effects of changing parameters are represented through the graphs. |
|---|---|
| ISSN: | 1923-2926 1923-2934 |