A credit policy approach in a two-warehouse inventory model for deteriorating items with price- and stock-dependent demand under partial backlogging

Gobinda Chandra Panda, Md. Al‐Amin Khan, Ali Akbar Shaikh

2018-04-27articleJournal of industrial engineering international112 citationsdiamond

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Supply Chain and Inventory Management Working Capital and Financial Performance Optimization and Mathematical Programming

Abstract

Advertisement of the product is an important factor in inventory analysis. Also, price and stock have an important role to attract more customers in the competitive business situations. Trade credit policy is another important role in inventory analysis. We have combined these three factors together in a two-warehouse inventory model and represented it mathematically. In addition, we have added deteriorating factor of our proposed problem with price- and stock-dependent demand under partial backlogged shortage and solved. The frequency of advertisement is considered constant for a year in this paper. The proposed model is highly nonlinear in nature. Due to highly nonlinearity, we could not find the closed form solution. In this paper, trade credit facility is taken in the perspective of retailer, and all the possible cases and subcases of the model are discussed and solved using lingo 10.0 software. The results of sensitivity analysis prove the effectiveness of the proposed model.

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References

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2020Optimal policy for an inventory system with demand dependent on price, time and frequency of advertisement

2020A production inventory model with partial trade credit policy and reliability

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