Inventory Modeling for Deteriorating Imperfect Quality Items with Selling Price Dependent Demand and Shortage Backordering under Credit Financing

International Journal of Mathematical, Engineering and Management Sciences

卷:2

Prerna Gautam¹  Chandra K. Jaggi¹  Aditi Khanna¹ 

[1] Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India;

关键词: Deterioration;    Shortages;    Price-dependent demand;    Imperfect quality items;    Credit financing.;   

DOI  :  10.33889/IJMEMS.2017.2.2-010

来源: DOAJ

【 摘 要 】

The production processes throughout the world aim at improving quality by introducing latest technologies so as to perform well in fierce competition. Despite this due to various unavoidable factors, most of the manufacturing processes end up with certain imperfections. Hence, all the items produced are not of perfect quality. The condition tends to be more susceptible while dealing with items of deteriorating quality; therefore an inspection process is must for screening good quality items from the ordered lot. Demand is assumed to be price dependent and it is represented by a constant price elasticity function. Also to endure with the rapid growth and turbulent markets, the suppliers try to engage and attract retailers through various gimmicks and one such contrivance is offering trade credit, which is proved to be an influential strategy for attracting new customers. In view of this, the present paper develops an inventory model for items of imperfect quality with deterioration under trade-credit policies with price dependent demand. Shortages are allowed and fully backlogged. A mathematical model is developed to depict this scenario. The aim of the study is to optimize the optimal order level, backorder level and selling price so as to maximize the retailer’s total profit. Findings are validated quantitatively by using numerical analysis. Sensitivity analysis is also performed so as to cater some important decision-making insights.

【 授权许可】

Unknown