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An EOQ inventory model for non-instantaneous deteriorating item with constant demand under progressive financial trade credit facility

Author

Listed:
  • Monalisha Tripathy

    (Banasthali Vidyapith)

  • Geetanjali Sharma

    (Banasthali Vidyapith)

  • Anuj Kumar Sharma

    (Shyam Lal College, University of Delhi)

Abstract

In this paper, the authors are considering an inventory model for non-instantaneous deteriorating items where progressive trade credit policy plays a major role. This model is developed in financial environment considering various realistic financial scenarios. The aim of this work is to develop a profit function by considering various situations depending on the trade credit period in economic environment. During this process, to illustrate the robustness of the model, a number of realistic cases, sub cases and scenarios are examined. An algorithm is established to obtain the average profit, the replenishment time and the optimal order quantity. A comprehensive sensitivity analysis has been performed on the optimal case, which is obtained by solving the hypothetical numerical examples.

Suggested Citation

  • Monalisha Tripathy & Geetanjali Sharma & Anuj Kumar Sharma, 2022. "An EOQ inventory model for non-instantaneous deteriorating item with constant demand under progressive financial trade credit facility," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1215-1243, December.
    • Handle: RePEc:spr:opsear:v:59:y:2022:i:4:d:10.1007_s12597-022-00573-5
    DOI: 10.1007/s12597-022-00573-5
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    References listed on IDEAS

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    1. 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.
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    4. Tiwari, Sunil & Jaggi, Chandra K. & Gupta, Mamta & Cárdenas-Barrón, Leopoldo Eduardo, 2018. "Optimal pricing and lot-sizing policy for supply chain system with deteriorating items under limited storage capacity," International Journal of Production Economics, Elsevier, vol. 200(C), pages 278-290.
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    10. Taleizadeh, Ata Allah & Pentico, David W. & Saeed Jabalameli, Mohammad & Aryanezhad, Mirbahador, 2013. "An EOQ model with partial delayed payment and partial backordering," Omega, Elsevier, vol. 41(2), pages 354-368.
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