A Global Optimizing Policy for Decaying Items with Ramp-Type Demand Rate under Two-Level Trade Credit Financing Taking Account of Preservation Technology. (25th February 2013)

• Record Type: Journal Article
• Authors: Singh, S. R.; Sharma, Swati
• Other Names: Benli Omer Academic Editor.
• Is Part Of: Advances in decision sciences. Volume 2013(2013)
• Publication Date: 2013-02-25
• Subjects: Decision making -- Periodicals; Decision making; Electronic journals; Periodicals; 519
• DOI: 10.1155/2013/126385
• Languages: English
• ISSNs: 2090-3359

Abstract

Abstract : An inventory system for deteriorating items, with ramp-type demand rate, under two-level trade credit policy taking account of preservation technology is considered. The objective of this study is to develop a deteriorating inventory policy when the supplier provides to the retailer a permissible delay in payments, and during this credit period, the retailer accumulates the revenue and earns interest on that revenue; also the retailer invests on the preservation technology to reduce the rate of product deterioration. Shortages are allowed and partially backlogged. Sufficient conditions of the existence and uniqueness of the optimal replenishment policy are provided, and an algorithm, for its determination, is proposed. Numerical examples draw attention to the obtained results, and the sensitivity analysis of the optimal solution with respect to leading parameters of the system is carried out.