An inventory model with declining demand market for deteriorating items under a trade credit policy. Issue 4 (1st October 2016)

• Record Type: Journal Article
• Authors: Pervin, Magfura; Mahata, Gour Chandra; Kumar Roy, Sankar
• Is Part Of: International journal of management science and engineering management. Volume 11:Issue 4(2016)
• Page Start: 243
• Page End: 251
• Publication Date: 2016-10-01
• Subjects: Inventory -- trade credit -- declining demand -- deteriorating items; C60 -- C61 -- D80 -- M11 -- C02; Management science -- Periodicals; Engineering -- Management -- Periodicals; Engineering -- Management; Management science; Periodicals; 658.005
• DOI: 10.1080/17509653.2015.1081082
• Languages: English
• ISSNs: 1750-9661

Abstract

Abstract: The main purpose of this paper is to investigate the optimal retailer's replenishment decisions for deteriorating items under a trade credit policy to reflect more realistic situations within an economic product quantity framework. In this paper, we analyse an inventory model when the supplier offers the retailer a credit period to settle the account, if the ret ailer orders a large quantity. The proposed study is meant for a declining demand market in which shortages are not allowed. The demand rate is a decreasing function of time and the deterioration rate is a constant fraction of the on-hand inventory. The mathematical formulation is explored by numerical examples. An analysis of the sensitivity of parameters on the optimal solution of our proposed study is carried out.