Title: Two inventory models for growing items under different payment policies with deterioration
Authors: Ashish Sharma; Amit Kumar Saraswat
Addresses: School of Sciences, CHRIST (Deemed to be University), Delhi-NCR, Ghaziabad, 201003, India ' Department of Mathematics, Institute of Applied Sciences and Humanities, GLA University, NH-2, Mathura, 281406, India
Abstract: Industries of growing items show an upward trend in the production as well as in consumption. Poultry and livestock are good examples of growing items which are both deteriorating and ameliorating in nature. In this study apart from these specific features of growing items, one of the real-world business policies, permission of delay in payment is also considered. Present paper proposed two inventory models, one with the permission of delay in payment and another without it. Concavity of the profit functions with respect to decision variables are discussed analytically for both the models. Solution procedure and numerical examples are provided in order to get the managerial insights. The numerical analysis growth in weight is approximated by Richard's growth function. The numerical analysis predicts that net profit and the initial purchase quantity both increases under the permissible delay payment policy compared to without it. Sensitivity analysis provides important managerial insights.
Keywords: growing items; inventory management; deteriorating items; mortality; delay in payment.
International Journal of Procurement Management, 2022 Vol.15 No.4, pp.447 - 462
Received: 23 Sep 2020
Accepted: 16 Jan 2021
Published online: 01 Jun 2022 *