Title: An integrated inventory model with delay in payment for deteriorating item under Weibull distribution and advertisement cum price-dependent demand

Authors: Bibhas Chandra Das; Barun Das; Shyamal Kumar Mondal

Addresses: Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, West Bengal, Pin-721102, India ' Department of Mathematics, Jhargram Raj College, Midnapore, Pin-721507, India ' Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, West Bengal, Pin-721102, India

Abstract: This paper develops an integrated inventory model of supplier and retailer with permissible delay in payment in which customers' demand is sensitive to the advertisement and selling price of the item. The model considers the finite supply rate of the item by supplier to retailer. The supplier offers a credit period to retailer and this credit period and supply rate are related to each other. The item deteriorates in Weibull-distribution rate. The profit maximisation of this integrated model is considered in this paper. The model is considered for different cases. Some numerical examples and sensitivity analysis on some parameters are provided to illustrate the proposed model.

Keywords: integrated inventory modelling; payment delays; deteriorating items; Weibull deterioration; credit period; variable demand; finite supply rate; profit maximisation.

DOI: 10.1504/IJOR.2014.062456

International Journal of Operational Research, 2014 Vol.20 No.3, pp.341 - 368

Received: 09 May 2012
Accepted: 26 Nov 2012
Published online: 21 Jun 2014 *

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