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Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments

Author

Listed:
  • Rabin Kumar Mallick

    (Vidyasagar University)

  • Kartik Patra

    (Vivekananda Satavarshiki Mahavidyalaya)

  • Shyamal Kumar Mondal

    (Vidyasagar University)

Abstract

It is seen that the trade credit period has an important role in real business world. In this article, an inventory model has been developed by considering stochastic lead time demand with lead time crashing cost. Here, also to get the impact between credit period and lead time, a lead time dependent credit period has been considered. In this model, considering partial back-order, the effect of lost sale has been included. Under the above considerations, an inventory model has been optimized in the parlance of infinite time horizon. Here, three objective functions have been developed on the basis of the position of credit period and business period. Finally, to study the feasibility of the model, three different numerical examples have been illustrated with sensitivity analysis with respect to a parameter.

Suggested Citation

  • Rabin Kumar Mallick & Kartik Patra & Shyamal Kumar Mondal, 2020. "Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments," Annals of Operations Research, Springer, vol. 292(1), pages 341-369, September.
    • Handle: RePEc:spr:annopr:v:292:y:2020:i:1:d:10.1007_s10479-018-3033-6
    DOI: 10.1007/s10479-018-3033-6
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    References listed on IDEAS

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    2. Anushri Maji & Asoke Kumar Bhunia & Shyamal Kumar Mondal, 2022. "A production-reliability-inventory model for a series-parallel system with mixed strategy considering shortage, warranty period, credit period in crisp and stochastic sense," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 862-907, September.
    3. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    4. Mei-Chuan Cheng & Hui-Chiung Lo & Chih-Te Yang, 2023. "Optimizing Pricing, Pre-Sale Incentive, and Inventory Decisions with Advance Sales and Trade Credit under Carbon Tax Policy," Mathematics, MDPI, vol. 11(11), pages 1-18, May.

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