Title: Impact of trade credit on inventory models for Weibull distribution deteriorating items with partial backlogging in two-warehouse environment

Authors: Chandra K. Jaggi; Sunil Tiwari; Mamta Gupta

Addresses: Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India ' Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India ' Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India

Abstract: This article analyses a two-warehouse inventory system for deteriorating items under trade credit policy. In the present model, the deterioration rate of items followed Weibull distribution. Shortages are allowed and are partially backlogged. In this work, a retailer who purchases the items enjoys a fixed credit period offered by his/her supplier and, in turn, also offers a credit period to his/her customers in order to promote the competition. Several numerical examples are provided to illustrate the behaviour of the model and highlight some managerial insights.

Keywords: inventory; Weibull distribution; partial backlogging; trade credit; two-warehouse.

DOI: 10.1504/IJLSM.2018.093582

International Journal of Logistics Systems and Management, 2018 Vol.30 No.4, pp.503 - 520

Received: 19 Dec 2016
Accepted: 18 Feb 2017
Published online: 30 Jul 2018 *

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