Title: Optimal ordering policy for deteriorating items with stock dependent demand, partial backlogging and trade credit period

Authors: Sachin Kumar Verma; Mohd. Rizwanullah; Chaman Singh

Addresses: Manipal University Jaipur, Jaipur, India ' Manipal University Jaipur, Jaipur, India ' Acharya Narendra Dev College, University of Delhi, New Delhi, India

Abstract: In this paper, policies of optimal ordering has been focussed on economic order quantity (EOQ) model, where we considered deteriorated as well as non-instantaneous nature items. In this inventory model, we are also assuming there is a stock-dependent demand and constant holding cost. Occurrence of shortage during the complete process of the system, taking into consideration with partial backlogging where deterioration of items follows the Weibull distribution. In the present study, it is considered that the supplier's proposed lucrative trade credit offers to the retailers to buy more to generate more revenue. Numerical examples parallel to the present inventory model gives an optimal result. Lastly, sensitivity analysis applied to different parameters and graphical representations have shown to validate the model.

Keywords: stock dependent demand pattern; partial backlogging; constant holding cost; trade credit; Weibull deterioration.

DOI: 10.1504/IJLSM.2021.117709

International Journal of Logistics Systems and Management, 2021 Vol.40 No.1, pp.95 - 120

Received: 10 Feb 2019
Accepted: 05 Aug 2019
Published online: 21 Sep 2021 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article