Title: An EOQ inventory model with stock dependent demand under permissible delay in payment

Authors: Trailokyanath Singh; Hadibandhu Pattanayak; Ameeya Kumar Nayak; Nirakar Niranjan Sethy

Addresses: Department of Mathematics, C.V. Raman College of Engineering, Bhubaneswar – 752054, Odisha, India ' Department of Mathematics, Institutes of Mathematics and Applications, Andharua, Bhubaneswar-751003, Odisha, India ' Department of Mathematics, IIT Roorkee, Roorkee 247667, India ' Ravenshaw University, Cuttack 753003, Odisha, India

Abstract: The present paper focuses on an economic order quantity (EOQ) inventory model for deteriorating items having stock dependent demand when delay in payment is permissible. The deteriorating items follow constant deterioration rate. Shortages are allowed and are completely backlogged. The mathematical models are also derived under two circumstances: Case 1: the permissible delay period is less than or equal to the shortage time point for settling the account and Case 2: the permissible delay period is greater than the shortage time point for settling the account. Numerical examples are provided to illustrate the effectiveness of the proposed methods and solution procedure. Furthermore, sensitivity analysis of the various parameters is carried out and some interesting managerial insights are presented.

Keywords: constant deterioration; permissible delay in payments; shortage; stock dependent demand.

DOI: 10.1504/IJLSM.2017.085883

International Journal of Logistics Systems and Management, 2017 Vol.28 No.1, pp.24 - 41

Received: 21 Jan 2016
Accepted: 03 Jun 2016
Published online: 17 Aug 2017 *

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