Optimal lot sizing policy with power demand and composed shortages under trade credits. (2017)

• Record Type: Journal Article
• Authors: Shukla, H.S.; Tripathi, R.P.; Sang, Neha; Tiwari, S.K.
• Is Part Of: International journal of knowledge management in tourism and hospitality. Volume 1:Number 1(2017)
• Page Start: 20
• Page End: 39
• Publication Date: 2017
• Subjects: inventory -- composed shortages -- stock-dependent demand -- credit period -- order quantity; Tourism -- Data processing -- Periodicals; Tourism -- Management -- Periodicals; Knowledge management -- Periodicals; 338.4791028557
• Languages: English
• ISSNs: 1756-0322

Abstract

This paper deals with an optimal ordering policy for non-deteriorating item with power demand under trade credits. The shortages are allowed and combination of backlogged and lost sales. Mathematical model is developed under two different situations, i.e., case 1: the permissible delay period is less than time to finish positive inventory and case 2 trade credit period is greater than or equal to time to finish positive inventory. Numerical examples are provided to illustrate the algorithm and theoretical results. The sensitivity analysis is provided on the optimal solution. The second order approximations are used for exponential terms to find the complexity on the optimal solution.