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An inventory model with trade-credit policy and variable deterioration for fixed lifetime products

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  • Biswajit Sarkar
  • Sharmila Saren
  • Leopoldo Cárdenas-Barrón

Abstract

The purpose of this study is two-fold. The first is to consider supplier’s and retailer’s trade-credit policy for fixed lifetime products and the second is to extend Mahata’s 2012 model with time varying deterioration where Mahata (Expert Syst Appl 39(3):3537–3550, 2012 ) wrote exponential deterioration but actually he considered constant deterioration. We assume that the suppliers offer full trade-credit to retailers but retailers offer partial trade-credit to their customers. Some numerical examples along with graphical representations are given to illustrate the model. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Biswajit Sarkar & Sharmila Saren & Leopoldo Cárdenas-Barrón, 2015. "An inventory model with trade-credit policy and variable deterioration for fixed lifetime products," Annals of Operations Research, Springer, vol. 229(1), pages 677-702, June.
    • Handle: RePEc:spr:annopr:v:229:y:2015:i:1:p:677-702:10.1007/s10479-014-1745-9
    DOI: 10.1007/s10479-014-1745-9
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    5. Jiang Wu & Jinn-Tsair Teng & Konstantina Skouri, 2018. "Optimal inventory policies for deteriorating items with trapezoidal-type demand patterns and maximum lifetimes under upstream and downstream trade credits," Annals of Operations Research, Springer, vol. 264(1), pages 459-476, May.
    6. Wu, Jiang & Al-khateeb, Faisal B. & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "Inventory models for deteriorating items with maximum lifetime under downstream partial trade credits to credit-risk customers by discounted cash-flow analysis," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 105-115.
    7. Kun-Jen Chung & Jui-Jung Liao & Shy-Der Lin & Sheng-Tu Chuang & Hari Mohan Srivastava, 2019. "The Inventory Model for Deteriorating Items under Conditions Involving Cash Discount and Trade Credit," Mathematics, MDPI, vol. 7(7), pages 1-20, July.
    8. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Leopoldo Eduardo Cárdenas-Barrón, 2020. "A multiproduct single machine economic production quantity (EPQ) inventory model with discrete delivery order, joint production policy and budget constraints," Annals of Operations Research, Springer, vol. 286(1), pages 265-301, March.
    9. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.
    10. Yong He & Hongfu Huang & Dong Li, 2020. "Inventory and pricing decisions for a dual-channel supply chain with deteriorating products," Operational Research, Springer, vol. 20(3), pages 1461-1503, September.
    11. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
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    14. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    15. Xu, Xinhan & Chen, Xiangfeng & Jia, Fu & Brown, Steve & Gong, Yu & Xu, Yifan, 2018. "Supply chain finance: A systematic literature review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 160-173.
    16. Ruihai Li & Jinn-Tsair Teng & Yingfei Zheng, 2019. "Optimal credit term, order quantity and selling price for perishable products when demand depends on selling price, expiration date, and credit period," Annals of Operations Research, Springer, vol. 280(1), pages 377-405, September.
    17. Alaa Fouad Momena & Rakibul Haque & Mostafijur Rahaman & Sankar Prasad Mondal, 2023. "A Two-Storage Inventory Model with Trade Credit Policy and Time-Varying Holding Cost under Quantity Discounts," Logistics, MDPI, vol. 7(4), pages 1-25, October.
    18. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Goh, Mark & Shaikh, Ali Akbar, 2018. "Joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two-level partial trade credits in supply chain," International Journal of Production Economics, Elsevier, vol. 200(C), pages 16-36.
    19. Naoufel Cheikhrouhou & Biswajit Sarkar & Baishakhi Ganguly & Asif Iqbal Malik & Rafael Batista & Young Hae Lee, 2018. "Optimization of sample size and order size in an inventory model with quality inspection and return of defective items," Annals of Operations Research, Springer, vol. 271(2), pages 445-467, December.
    20. Juanjuan Qin & Aina Zhang & Liangjie Xia & Mengqi Liu, 2017. "Retail Order-Taking Strategies Under Competing Trade Credit Policies With Varying Demands," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-17, February.
    21. Tai, Allen H. & Xie, Yue & He, Wanhua & Ching, Wai-Ki, 2019. "Joint inspection and inventory control for deteriorating items with random maximum lifetime," International Journal of Production Economics, Elsevier, vol. 207(C), pages 144-162.
    22. Ata Allah Taleizadeh & Shayan Tavakoli & Luis Augusto San-José, 2018. "A lot sizing model with advance payment and planned backordering," Annals of Operations Research, Springer, vol. 271(2), pages 1001-1022, December.
    23. Lopez Alvarez, Jose A. & Buijs, Paul & Kilic, Onur A. & Vis, Iris F.A., 2020. "An inventory control policy for liquefied natural gas as a transportation fuel," Omega, Elsevier, vol. 90(C).
    24. Ata Allah Taleizadeh & Sara Tavassoli & Arijit Bhattacharya, 2020. "Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering," Annals of Operations Research, Springer, vol. 287(1), pages 403-437, April.

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