Supply chain model for deteriorating items with stock-dependent consumption rate and shortages under inflation and permissible delay in payment

Chandra K. Jaggi · Aditi Khanna

30 citations0/0 files storedInternational Journal of Mathematics in Operational Research

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Supply Chain and Inventory Management Sustainable Supply Chain Management Working Capital and Financial Performance

Abstract

In today's world the financial decisions of any business/retail enterprise are very crucial, as from the financial standpoint, an inventory i.e., stock on display represents a capital investment and must compete with other assets for a firm's limited capital funds. Moreover, rising inflation rate directly affects the financial situation of an organization. On the contrary, the today's market is totally customer oriented which forces the retailer to invest more on stock in order to attract more and more customers. Further, this situation becomes more challenging when the retailer is dealing with deteriorating items. Apart from all this, the trade credit also plays a vital role in the financial decision making, as it helps in reducing the costs of holding stock. Keeping such a scenario in mind, this paper develops an inventory model for deteriorating items with stock-dependent consumption rate and allowable shortages under inflation and permissible delay in payments. Finally the model has been validated through numerical examples.

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References

1979Decision Systems for Inventory Management and Production Planning 1973An EOQ Model for Items with Weibull Distribution Deterioration 1995Ordering Policies of Deteriorating Items under Permissible Delay in Payments 1963A model for an exponentially decaying inventory 1997An ordering policy for deteriorating items with allowable shortage and permissible delay in payment 1975Economic Order Quantities with Inflation 1981(T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand 2005An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging

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