Title: An inventory model with variable demand incorporating unfaithfulness of customers under two-level trade credit
Authors: Prasenjit Pramanik; Manas Kumar Maiti
Addresses: Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, Paschim-Medinipur, West Bengal 721102, India ' Department of Mathematics, Mahishadal Raj College, Mahishadal, Purba-Medinipur, West Bengal 721628, India
Abstract: In this research work, an inventory model has been developed under two-level trade credit policy with unfaithful customers. A percentage of the total customers are treated as unfaithful customers. Demand is influenced by customers' credit period, credit amount and selling price. Due to the vagueness of some parameters, the proposed model is formulated in both the crisp and fuzzy environments. The main purpose of this research work is to determine the optimal replenishment policy so that the total profit of the retailer is maximised. The existence of a solution to the problem is discussed theoretically and then some numerical experiments are undertaken. To find the marketing decision of a generalised model (when the number of variables increases) and for the fuzzy objectives, a soft computing technique is used. Some sensitivity analyses are performed to provide some managerial insights. Finally a conclusion is drawn and some future research directions are proposed. [Received: 14 November 2017; Accepted: 2 January 2019]
Keywords: inventory; trade credit; unfaithful customers; particle swarm optimisation; variable demand.
European Journal of Industrial Engineering, 2019 Vol.13 No.4, pp.461 - 488
Accepted: 02 Jan 2019
Published online: 27 Jun 2019 *