An EOQ model for deteriorating item with time-dependent demand and partial backlogging: advance payment policy. Issue 3 (16th May 2022)

• Record Type: Journal Article
• Authors: Rahman, Md Sadikur; Hasan, Sk Nurul; Banerjee, Tanmoy; Mondal, Rajan; Shaikh, Ali Akbar
• Is Part Of: International journal of logistics systems and management. Volume 41:Issue 3(2022)
• Page Start: 332
• Page End: 348
• Publication Date: 2022-05-16
• Subjects: EOQ -- deterioration -- time dependent demand -- advance payment -- partial backlogged shortage; Business logistics -- Periodicals; 658.5005
• Languages: English
• ISSNs: 1742-7967

Abstract

The objective of this work is to formulate an inventory model for a deteriorating item under time dependent demand with partially backlogged shortages. Here, backlogging rate has been considered as the exponential function of the length of the waiting time of the customers. An important business policy, advance payment has also been introduced where a retailer makes an order of the product by paying a certain portion of the total purchase cost before receiving the product with some equal instalments and the rest amount has to be paid at the receiving time of the lot. Then corresponding cost minimisation problem has been formulated. Due to the high nonlinearity of the corresponding optimisation problem, to find the best-found solution of the objective function LINGO 18.0 software is used. To validate the proposed model, one numerical example has been solved. Finally, the effect of changes of different parameters of the proposed model have been analysed graphically and a fruitful conclusion has been made.