A two warehouse inventory model for deteriorating items with variable demand under alternative trade credit policy

This paper develops an inventory model for a deteriorating item with variable demand dependent on the selling price and frequency of advertisement of the item under the financial trade credit policy. Shortages are allowed and these are partially backlogged with a variable rate dependent on the duration of waiting time until to the arrival of next order. In this inventory model, the deterioration rate follows a three-parameter Weibull distribution. The corresponding inventory model is formulated and solved by using the well-known generalized reduced gradient method along with an algorithm. To validate the inventory model, two numerical examples are considered and solved. Finally, based on one numerical example, the impacts of different parameters are studied by a sensitivity analysis considering one parameter at a time and leaving the other parameters fixed.

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Closed-Form Solutions for the EPQ-Based Inventory Model for Exponentially Deteriorating Items Under Retailer Partial Trade Credit Policy in Supply Chain

International Journal of Applied and Computational Mathematics ◽

10.1007/s40819-018-0504-z ◽

2018 ◽

Vol 4 (2) ◽

Cited By ~ 2

Author(s):

Ali Akbar Shaikh ◽

Leopoldo Eduardo Cárdenas-Barrón ◽

Sunil Tiwari

Keyword(s):

Supply Chain ◽

Closed Form ◽

Trade Credit ◽

Inventory Model ◽

Deteriorating Items ◽

Credit Policy ◽

Closed Form Solutions ◽

Partial Trade Credit

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Study of Inventory Model for Deteriorating Items With Exponential Demand Function

GANIT Journal of Bangladesh Mathematical Society ◽

10.3329/ganit.v34i0.28557 ◽

2016 ◽

Vol 34 ◽

pp. 89-100

Author(s):

Manik Mondal ◽

Mohammed Forhad Uddin ◽

Kazi Anowar Hussain

Keyword(s):

Opportunity Cost ◽

Demand Function ◽

Trade Credit ◽

Unit Cost ◽

Inventory Model ◽

Deteriorating Items ◽

Bisection Method ◽

Credit Policy ◽

Deterioration Rate ◽

Linear Demand

This paper develops an inventory model for deteriorating items consisting the ordering cost, unit cost, opportunity cost, deterioration cost and shortage cost. In this inventory model instead of linear demand function nonlinear exponential function of time for deteriorating items with deterioration rate has been considered. The formulated model has numerically solved by bisection method. The effects of inflation and cash flow are also taken into account under a trade-credit policy of discount with time. In order to validate the model, numerical examples have been solved by bisection method using Matlab. Further, the sensitivity of different parameters is considered in order to estimate the cash flow.GANIT J. Bangladesh Math. Soc.Vol. 34 (2014) 89-100

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Estimation of inventory for deteriorating items with non-linear demand considering discount and without discount policy

Journal of Naval Architecture and Marine Engineering ◽

10.3329/jname.v13i2.23905 ◽

2016 ◽

Vol 13 (2) ◽

pp. 151-164

Author(s):

Manik Mondol ◽

M. Forhad Uddin ◽

M. S. Hossain

Keyword(s):

Cash Flow ◽

Opportunity Cost ◽

Demand Function ◽

Trade Credit ◽

Unit Cost ◽

Inventory Model ◽

Deteriorating Items ◽

Credit Policy ◽

Deterioration Rate ◽

Linear Demand

This paper develops an inventory model for deteriorating items consisting the ordering cost, unit cost, opportunity cost, deterioration cost and shortage cost. In this inventory model instead of linear demand function nonlinear exponential function of time for deteriorating items with deterioration rate has been considered. The effects of inflation and cash flow are also taken into account under a trade-credit policy of discount and without discount with time. In order to validate the model, numerical examples have been solved by bisection method deploying Matlab. Further, in order to estimate the cash flow the sensitivity of different parameters is considered.

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