scholarly journals Control of Non-instantaneous Degrading Inventory under Trade Credit and Partial Backlogging

2021 ◽  
Vol 4 (3) ◽  
pp. 122-141
Author(s):  
Pooja Meena ◽  
◽  
Anil Kumar Sharma ◽  
Ganesh Kumar ◽  
◽  
...  
Keyword(s):  
Sensitivity Analysis ◽  
Inventory Management ◽  
Trade Credit ◽  
Reduction Rate ◽  
Inventory System ◽  
Partial Backlogging ◽  
Usual Practice ◽  
Numerical Examples ◽  
Credit Term ◽  
Total Profit

Inventory management is an extremely difficult task. It has become usual practice for a provider during the last few decades to provide a retailer with a credit term. In this article, a non-instantly degradable products inventory system is built with a price-sensitive demand and a Weibull credit term allocation reduction rate. Some backlogged deficiencies are permitted. The aim is to maximize the total profit in this study by taking three cases into account. Numerical examples, graphical representations and sensitivity analysis demonstrate the application of the approach developed in this study.

scholarly journals Two – Warehouse Inventory System Model for Deteriorating Items Considering Partial Upstream Trade Credit Financing

2021 ◽  
pp. 69-80
Author(s):  
Z. H. Aliyu ◽  
B. Sani
Keyword(s):  
Sensitivity Analysis ◽  
Credit Risk ◽  
Trade Credit ◽  
Optimal Solution ◽  
Inventory System ◽  
System Model ◽  
Credit Period ◽  
Business Transaction ◽  
Credit Financing ◽  
Relevant Cost

In this study, we developed an inventory system model under two – level trade credit where the supplier considers the retailer as credit risk but the retailer considers the customers as credit worthy. Therefore, the retailer is given a trade credit period on  proportion of the goods ordered whenever he/she pays for proportion of the goods immediately after delivery. In the same vein, the retailer passes the same grace to the customers but without attaching any condition as the customers are assumed credit worthy. This partial upstream trade credit is offered to reduce the risk of failure in payment on the business transaction especially that most retailers are involved in bulk orders. The relevant cost functions are determined and a numerical example is given. Sensitivity analysis was carried out to see the effect of changes in parameters on the optimal solution of the model.

Optimal Ordering for Deteriorating Items of Fixed-Life with Quadratic Demand and Two-Level Trade Credit

2016 ◽  
pp. 1-16 ◽  
Author(s):  
Nita H. Shah ◽  
Mrudul Yogeshkumar Jani
Keyword(s):  
Sensitivity Analysis ◽  
Decision Maker ◽  
Trade Credit ◽  
Life Time ◽  
Deteriorating Items ◽  
Total Cost ◽  
Credit Period ◽  
Numerical Examples ◽  
Optimal Ordering ◽  
Purchase Quantity

This chapter studies the retailer's ordering policies when items in the stocking system has fixed life time and subject to deteriorate with time. The demand is considered to be quadratically decreasing. The supplier offers credit period to the retailer which in turn is partially passed on to customer. The retailer is the decision maker and the objective is to minimize the total cost of the system by ordering optimum purchase quantity. Numerical examples are given to find the best possible scenario for the retailer. Sensitivity analysis is carried out to derive player's insights.

scholarly journals Retailer’s joint pricing model through an effective preservation strategy under a trade-credit policy

2021 ◽  
Author(s):  
Abu Hashan Md Mashud ◽  
Biswajit Sarkar
Keyword(s):  
Inventory Management ◽  
Trade Credit ◽  
Optimization Technique ◽  
Optimal Strategies ◽  
Preservation Technology ◽  
Sustainable Marketing ◽  
Total Profit ◽  
Joint Pricing ◽  
Theoretical Results ◽  
Actual Life

Sustainable inventory management is a common issue for any industry. This proposed study explains a representation of mathematical modelling for maintaining sustainability through the preservation technology for deteriorating products and trade-credit strategy for sustainable marketing. Based on the actual life circumstances, it is found that the demand for deteriorated products is influenced by the increasing frequency of advertising and preservation technology. The foremost aim of this study is to maintain sustainability with optimal pricing and optimal strategies to invest in preservation technology and optimal cycle length to take full advantage of the total profit. For solving the model, a classical optimization technique is utilized, and some theoretical results are shown with a graph of the profit function. Couples of experiments compare the proposed results and the existing literature and give some outcomes for different deterioration types. To illustrate and justify the model, a sensitivity analysis conceded for demonstrating the proposed model's flexibility by changing one parameter while keeping others fixed. The result shows that the trade-credit strategy under the preservation technology makes the management's most substantial marketing benefit.

scholarly journals An Inventory Model for Deteriorating Items with Stock Dependent Demand and Partial Backlogging

2021 ◽  
Vol 9 (12) ◽  
pp. 296-302
Author(s):  
Vikas Kumar
Keyword(s):  
Waiting Time ◽  
Simple Algorithm ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Partial Backlogging ◽  
Numerical Examples ◽  
Proposed Model ◽  
Stock Dependent Demand ◽  
Total Profit ◽  
Dependent Demand

Abstract: In this paper, we formulate a deteriorating inventory model with stock-dependent demand Moreover, it is assumed that the shortages are allowed and partially backlogged, depending on the length of the waiting time for the next replenishment. The objective is to find the optimal replenishment to maximizing the total profit per unit time. We then provide a simple algorithm to find the optimal replenishment schedule for the proposed model. Finally, we use some numerical examples to illustrate the model. Keywords- Inventory, Deteriorating items, Stock dependent demand, Partial backlogging

scholarly journals Fuzzy Optimal Policy of Some Inventory System

2019 ◽  
Vol 8 (9) ◽  
pp. 3219-3223
Keyword(s):  
Inventory Management ◽  
Fuzzy System ◽  
Trade Credit ◽  
Balance Sheet ◽  
Inventory System ◽  
Inventory Systems ◽  
Financial Health ◽  
Credit System ◽  
Different Types ◽  
Fuzzy Parameters

Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet. Each and every organization implements different types of inventory systems to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial figures. The Inventory system is always dynamic. So with the help of fuzzy system it tries to develop a robust inventory model which will involve trade credit system assuming with cost fuzzy parameters. I

Retailer’s Ordering Policy in a Supply Chain when Demand is Price and Credit Period Dependent

2011 ◽  
Vol 2 (4) ◽  
pp. 61-74 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Amrina Kausar
Keyword(s):  
Sensitivity Analysis ◽  
Trade Credit ◽  
Credit Policy ◽  
Great Role ◽  
Credit Period ◽  
Numerical Examples ◽  
On Demand ◽  
Partial Trade Credit ◽  
Full Credit ◽  
Ordering Policy

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of non-payment. In order to reduce the risk of non-payment, businessman at times use a partial trade credit policy in which they demand a certain percentage of the total amount from the customer at the time of purchase and offers the credit for the remaining amount. Furthermore, it is also observed that the demand of FMCG is highly price sensitive. In order to see the effect of credit and price together, on demand, the retailer’s demand is taken as a function of price and credit period. Moreover it is assumed that the supplier offers the full credit to the retailer but the retailer passes a partial credit to customers. The inventory model, determines the optimal replenishment time, credit period, and price for the retailer that maximizes profit. Numerical examples have been provided to support the model followed by the comprehensive sensitivity analysis.

Credit Policies for Deteriorating Imperfect Quality Items With Exponentially Increasing Demand and Partial Backlogging

2018 ◽  
pp. 90-106 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Prerna Gautam ◽  
Aditi Khanna
Keyword(s):  
Sensitivity Analysis ◽  
Numerical Analysis ◽  
Trade Credit ◽  
Partial Backlogging ◽  
Inverse Relation ◽  
Screening Process ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Increasing Demand ◽  
Delay In Payments

In retail industries every ordered lot carry some fraction of imperfect quality items which can vary depending upon production and handling conditions. The situation is even more subtle when the items are prone to deterioration. However, an inspection process can spare us from such a criticality by bifurcating the defectives from the good quality lot. Thus, a screening process is mandatory. In the hyper-competitive market, trade-credit is well-known gimmick in order to boost the sales. Keeping in view, an inventory scenario of a retailer is investigated who has to deal with imperfect and “deteriorating items” under “permissible delay in payments”. The demand is assumed to be increasing exponentially. Shortages are permitted to occur and supposed to be “partially backlogged.” Rate of backlogging is assumed to have inverse relation with the waiting time for the subsequent replenishment. In this chapter, shortage point and length of cycle are jointly optimized. Numerical analysis and sensitivity analysis is performed to provide important insights for managerial persistence.

Substitutable Inventory System with Partial Backlogging under Continuous Review

2016 ◽  
pp. 183-199
Author(s):  
B. Vigneshwaran ◽  
N. Anbazhagan ◽  
V. Perumal
Keyword(s):  
Inventory System ◽  
The Other ◽  
Inventory Level ◽  
Partial Backlogging ◽  
Numerical Examples ◽  
Cost Rate ◽  
Continuous Review ◽  
Time Points ◽  
Negative Exponential Distribution ◽  
Negative Exponential

Consider a two-commodity substitutable inventory system with storage capacity Si for commodity i, (i=1,2) under continuous review. The demand time points for each commodity are assumed to form independent Poisson processes. The two commodities are assumed to be substitutable. That is when any one of the commodity's inventory level reaches zero, then the demand for that commodity will be satisfied by the other commodity. If no substitute is available, then this demand is backlogged up to the level Ni, for commodity i, (i=1,2). The reordering policy is to place an order for both the commodities, when both inventory levels are less than or equal to their respective reorder levels. If the inventory level drops to N1 or N2, then both inventory levels are pulled back to their maximum levels S1 and S2 immediately and the previous order gets canceled. The lead time is assumed to follow negative exponential distribution. Various stationary measures of system performances have been derived and total expected cost rate is computed. Numerical examples are provided.

scholarly journals Sustainable Inventory Management for Environmental Impact through Partial Backordering and Multi-Trade-Credit-Period

2018 ◽  
Vol 10 (12) ◽  
pp. 4761 ◽  
Author(s):  
Biswajit Sarkar ◽  
Waqas Ahmed ◽  
Seok-Beom Choi ◽  
Muhammad Tayyab
Keyword(s):  
Environmental Impact ◽  
Inventory Management ◽  
Trade Credit ◽  
Global Business ◽  
Numerical Illustration ◽  
Defective Items ◽  
Credit Period ◽  
Partial Backordering ◽  
Imperfect Items ◽  
Total Profit

Incorporation of sustainable management for the rework of defective items brings long lasting benefits. In global business, there are situations when the products are procured from a global supplier. There are chances that the received lot may contain a fraction of imperfect products. These imperfect products are still valuable and can be repairable to save the environment. It is sustainable to repair imperfect items in a local repair store as compared to sending it back to the supplier. The cost of carbon emissions is also incorporated in the function to incorporate the environmental impact on total profit. Meanwhile, the supplier also offers a multi-trade-credit-period to the buyer. The developed model is sustainable and reduces the environmental impact as well as benefits for interim financing. This paper has an objective to maximize the total profit by developing a synergic economic order quantity model by considering multi-trade-credit policy, rework, and shortages simultaneously. This model can help in making decisions to enhance the performance of sustainable inventory management by controlling the cycle time and a fraction of time for a global supply chain. A non-derivative approach is employed to develop a closed-form optimal result. The numerical illustration with sensitivity analysis is also drawn to provide managerial insights into real practices.

Retailer’s Ordering Policy in a Supply Chain when Demand is Price and Credit Period Dependent

2012 ◽  
pp. 262-277
Author(s):  
Chandra K. Jaggi ◽  
Amrina Kausar
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Great Risk ◽  
Trade Credit ◽  
Inventory Model ◽  
Partial Credit ◽  
Credit Period ◽  
Numerical Examples ◽  
On Demand ◽  
Ordering Policy

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of non-payment. In order to reduce the risk of non-payment, businessman at times use a partial trade credit policy in which they demand a certain percentage of the total amount from the customer at the time of purchase and offers the credit for the remaining amount. Furthermore, it is also observed that the demand of FMCG is highly price sensitive. In order to see the effect of credit and price together, on demand, the retailer’s demand is taken as a function of price and credit period. Moreover it is assumed that the supplier offers the full credit to the retailer but the retailer passes a partial credit to customers. The inventory model, determines the optimal replenishment time, credit period, and price for the retailer that maximizes profit. Numerical examples have been provided to support the model followed by the comprehensive sensitivity analysis.

Sign in / Sign up

Export Citation Format

Share Document