Title: Inventory policies for maximum fixed life-time product with quadratic demand under permissible delay in payments for a single supplier-two retailers
Authors: Nita H. Shah; Mrudul Y. Jani; Urmila Chaudhari
Addresses: Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, India ' Department of Applied Sciences, Faculty of Engineering and Technology, Parul University, Vadodara-391760, Gujarat, India ' Department of Applied Sciences, Faculty of Engineering and Technology, Parul University, Vadodara-391760, Gujarat, India
Abstract: In this article, we study inventory policies with permissible delay in payment from a single supplier to two retailers. We consider the product with maximum fixed-life time deterioration as loss of utility is the real scenario of products like fruits, vegetables, juices, etc. Here, time dependent quadratic demand is discussed which is suitable for the products whose demand increases primarily and afterward it starts to decrease. First, we discuss the centralised inventory system in which supplier and retailers willingly take joint decision. Next we address the model with decentralised policy in which supplier and both retailers take individual decisions. The objective is to minimise the total cost in centralised and decentralised policy with respect to cycle times of supplier and two retailers. The model is supported with numerical examples. Sensitivity analysis is carried out to derive insights for decision-maker.
Keywords: inventory control; permissible delay in payments; centralised and decentralised policy; maximum fixed life-time.
International Journal of Business Performance and Supply Chain Modelling, 2018 Vol.10 No.1, pp.33 - 48
Received: 18 Sep 2017
Accepted: 10 Apr 2018
Published online: 24 Jul 2018 *