Title: Retailer's ordering policy for deteriorating items with inflation-induced demand under trade credit policy

Authors: Chandra K. Jaggi, Aditi Khanna

Addresses: Faculty of Mathematical Sciences, Department of Operational Research, New Academic block, University of Delhi, Delhi – 110007, India. ' Faculty of Mathematical Sciences, Department of Operational Research, New Academic block, University of Delhi, Delhi – 110007, India

Abstract: The main objective of this paper is to model the retailer|s cost minimisation retail strategy when he confronts with the supplier trade promotion offer of credit policy of the type |d/D₁ Net D| under inflationary conditions and inflation-induced demand. A simple-to-use algorithm has been used to obtain the optimal order quantity and total cost. Results have been validated with the help of numerical example along with the sensitivity analysis.

Keywords: inventory; inflation-induced demand; deteriorating items; shortages; trade credit; DCF; discounted cash flow; retailing; retail strategies; algorithms; sensitivity analysis; ordering policies; cost minimisation.

DOI: 10.1504/IJOR.2009.026938

International Journal of Operational Research, 2009 Vol.6 No.3, pp.360 - 379

Published online: 09 Jul 2009 *

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