Title: Replenishment policy for deteriorating items with trade credit and allowable shortages under inflationary environment

Authors: S.R. Singh; Shilpy Tayal; Anjali Gaur

Addresses: Department of Mathematics, CCS University, Meerut, India ' Department of Mathematics, CCS University, Meerut, India ' Department of Mathematics, Banasthali University, Banasthali, India

Abstract: In this paper we have developed an inventory model for deteriorating items in which demand of the product is a function of expiration date. In such cases the demand for the product generally decreases as the product is nearer to its expiration date. The different cases based on the allowed trade credit period have been discussed under inflationary environment. Shortages are allowed and partially backlogged. To exemplify this model numerical examples for all the cases and sensitivity analysis with respect to important parameters have been provided. The convexities graphs and the variation in total cost with the changes in parameters are represented with the help of the graph. The objective of this paper is to find out the optimal ordering quantity by which one can minimise the total associated cost of the system.

Keywords: deterioration; trade credit period; inflation; shortages; partial backlogging.

DOI: 10.1504/IJPMB.2020.110284

International Journal of Process Management and Benchmarking, 2020 Vol.10 No.4, pp.462 - 478

Received: 19 Jan 2018
Accepted: 17 May 2018
Published online: 13 Oct 2020 *

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