Optimal payment policy with price-dependent demand and three parameters dependent deterioration rate under the influence trade credit. (2016)

• Record Type: Journal Article
• Authors: Kumar, Mukesh; Aarya, Deo Datta
• Is Part Of: International journal of operational research. Volume 26:Number 2(2016)
• Page Start: 236
• Page End: 251
• Publication Date: 2016
• Subjects: price-dependent demand -- Weibull distribution -- deterioration rate -- trade credit -- inventory modelling -- inventory management -- optimal payment policy -- deteriorating items; Operations research -- Periodicals; 003.05
• Languages: English
• ISSNs: 1745-7645

Abstract

In this paper we developed an inventory model for an optimal payment policy for deteriorating items under the influence of trade credit. Demand rate of the product is considered as the function of selling price. Here, we consider the deteriorating item that follows three-parameter Weibull distribution deterioration. Finally, the optimal solution is illustrated with help of numerical example and the sensitivity analysis is carried out with respect to different parameters.