Inventory control model using discounted cash flow approach under multiple suppliers' trade credit and stock dependent demand for deteriorating items. (29th March 2019)

• Record Type: Journal Article
• Authors: Tripathi, R.P.; Singh, D.; Aneja, Surbhi
• Is Part Of: International journal of inventory research. Volume 5:Number 3(2019)
• Page Start: 210
• Page End: 223
• Publication Date: 2019-03-29
• Subjects: demand -- deterioration -- trade credit -- cash discount -- cycle time; Inventories -- Periodicals; Inventories -- Mathematical models -- Periodicals; Inventory control -- Periodicals; 658.787
• Languages: English
• ISSNs: 1746-6962

Abstract

Even though publications on discussed cash flow inventory problem are steadily growing, modelling the manager's characteristics and their effect on his/her decisions and planning outcome has not attracted in the text. In order to fill this gap and model authenticity more precisely. This research work develops a new economic order quantity (EOQ) model using discounted cash flow (DCF) approach under multiple suppliers' trade credits with stock-linked demand for failing commodities. This paper is a generalisation of an offered inventory model with trade credits in which both demand and deterioration are stable. Here the assumption of constant demand relaxed by incorporating the idea of learning in stock-dependent demand using DCF approach. The projected inventory control model using DCF approach and learning in multiple suppliers' trade credit has most excellent presentation in competence. Mathematical formulation is provided for three different situations for finding optimal cycle time and all future cash flows. On the basis of optimal solution some useful results are also discussed. Numerical examples are provided to demonstrate the models proposed in this study. Sensitivity analysis is also presented dissimilar parameters.