Comprehensive economic order quantity model for Weibull decline with negative exponential demand under trade credits. (28th December 2021)

• Record Type: Journal Article
• Authors: Tripathi, R.P.; Pandey, Hari Shyam
• Is Part Of: International journal of mathematics in operational research. Volume 20:Number 4(2022)
• Page Start: 548
• Page End: 564
• Publication Date: 2021-12-28
• Subjects: trade credits -- Weibull distribution -- permissible delay -- deterioration -- inventory; Operations research -- Mathematical models -- Periodicals; Operations research -- Mathematics -- Periodicals; Decision making -- Mathematical models -- Periodicals; 658.4033
• Languages: English
• ISSNs: 1757-5850

Abstract

In the current circumstances, demand for daily useable and useful items fluctuates for the period of supply chain, and depend on its nature like sensitivity for the price, degree of freshness and uncertain deterioration. In this study, demand is considered as a negative power of exponential. The deterioration rate is taken using Weibull distribution time liked under allowable delay in payment. The trade credit mechanism is the reality of the modern universe in which supplier in each stage has an incentive to offer permissible delay in payments with pushing the sales, while the buyer has an encouragement of shorter working capital cycle with credit method. The mathematical model is provided in two unlike situations: 1) allowable delay in payments is less than cycle time; 2) permitted delay period is greater than cycle time. The optimal total cost is U-shaped, obtained by drawing graphs between total cost and cycle time. The numerical illustrations are precise to confirm the theoretical outcomes. The sensitivity examination is conversed by changing system parameters. Mathematica 7.0 is used for finding numerical results.