A finite replenishment model with increasing demand under inflation. (19th April 2010)

• Record Type: Journal Article
• Authors: Sarkar, Biswajit; Sana, Shib Sankar; Chaudhuri, Kripasindhu
• Is Part Of: International journal of mathematics in operational research. Volume 2:Number 3(2010)
• Page Start: 347
• Page End: 385
• Publication Date: 2010-04-19
• Subjects: inventory management -- time-varying demand -- discount rates -- payment delay -- inflation -- finite replenishment modelling -- trade credit policy -- economic order quantity -- EOQ models -- demand patterns; Operations research -- Mathematical models -- Periodicals; Operations research -- Mathematics -- Periodicals; Decision making -- Mathematical models -- Periodicals; 658.4033
• Languages: English
• ISSNs: 1757-5850

Abstract

In this inventory system, the retailers are allowed a period by the supplier to get trade-credit for the goods bought with some discount rates. Depending on the different lengths of the payment period, the retailers can earn interest from the supplier on the sales of inventory. The main purpose of this paper is to develop the retailer's optimal replenishment decision under trade-credit policy with effects of inflation. In this point of view, we consider an economic order quantity model for various types of deterministic demand patterns in which the delay periods and different discounts rates on purchasing cost are offered by the supplier to the retailers in the presence of inflation. The integrated associated profit function is maximised by analytical calculus method for various issues. Finally, some numerical examples are discussed to test the model for various type of demand pattern which are also graphically illustrated.