Title: A trade credit policy in an EOQ model with stock sensitive demand and shortages for deteriorating items

Authors: Nidhi Handa; S.R. Singh; Neha Punetha; Shilpy Tayal

Addresses: Department of Mathematics and Statistics, KGC, Gurukul Kangri Vishwavidyalaya, Haridwar-249408, Uttarakhand, India ' Department of Mathematics, CCS University, Meerut-250004, UP, India ' Department of Mathematics and Statistics, KGC, Gurukul Kangri Vishwavidyalaya, Haridwar-249408, Uttarakhand, India ' Department of Mathematics, Graphic Era Hill University, Dehradun-248002, Uttarakhand, India

Abstract: Here, an economic order quantity (EOQ) inventory model with stock dependent demand under multiple cases of permissible delay for deteriorating items has been derived. In corporate world, the proper stock level attracts the consumers and has a positive impact on sale. In this sense the demand rate is stock dependent which attracts the consumers to purchase more. Trade credit on payment works as a publicity tool. The shortage occurs and partially backlogged in which backlogging rate is exponentially decreasing. Convexity of the optimal solution for different cases of trade credit has been discussed. The model is exemplified numerically for different cases. The impact of demand parameter, deterioration rate, backlogging parameter and interest earn rate on critical time as well as on total system cost are mentioned by sensitivity analysis. Aim of this paper is to find optimum cost. Mathematica 11.3 is used here.

Keywords: inventory; EOQ; economic order quantity; stock dependent demand; deterioration; shortages; partial backlogging; trade credit.

DOI: 10.1504/IJSOI.2020.111299

International Journal of Services Operations and Informatics, 2020 Vol.10 No.4, pp.350 - 364

Received: 08 May 2020
Accepted: 12 May 2020
Published online: 18 Nov 2020 *

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