An inventory model of a three parameter Weibull distributed deteriorating item with variable demand dependent on price and frequency of advertisement under trade credit

2019 ◽  
Vol 53 (3) ◽  
pp. 903-916 ◽  
Author(s):  
Ali Akbar Shaikh ◽  
Leopoldo Eduardo Cárdenas–Barrón ◽  
Asoke Kumar Bhunia ◽  
Sunil Tiwari
Keyword(s):  
Trade Credit ◽  
Inventory Model ◽  
Selling Price ◽  
Credit Policy ◽  
Variable Demand ◽  
Reduced Gradient Method ◽  
Deterioration Rate ◽  
Rate Dependent ◽  
Reduced Gradient ◽  
Generalized Reduced Gradient

This paper develops an inventory model for a deteriorating item with variable demand dependent on the selling price and frequency of advertisement of the item under the financial trade credit policy. Shortages are allowed and these are partially backlogged with a variable rate dependent on the duration of waiting time until to the arrival of next order. In this inventory model, the deterioration rate follows a three-parameter Weibull distribution. The corresponding inventory model is formulated and solved by using the well-known generalized reduced gradient method along with an algorithm. To validate the inventory model, two numerical examples are considered and solved. Finally, based on one numerical example, the impacts of different parameters are studied by a sensitivity analysis considering one parameter at a time and leaving the other parameters fixed.

scholarly journals Study of Inventory Model for Deteriorating Items With Exponential Demand Function

2016 ◽  
Vol 34 ◽  
pp. 89-100
Author(s):  
Manik Mondal ◽  
Mohammed Forhad Uddin ◽  
Kazi Anowar Hussain
Keyword(s):  
Opportunity Cost ◽  
Demand Function ◽  
Trade Credit ◽  
Unit Cost ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Bisection Method ◽  
Credit Policy ◽  
Deterioration Rate ◽  
Linear Demand

This paper develops an inventory model for deteriorating items consisting the ordering cost, unit cost, opportunity cost, deterioration cost and shortage cost. In this inventory model instead of linear demand function nonlinear exponential function of time for deteriorating items with deterioration rate has been considered. The formulated model has numerically solved by bisection method. The effects of inflation and cash flow are also taken into account under a trade-credit policy of discount with time. In order to validate the model, numerical examples have been solved by bisection method using Matlab. Further, the sensitivity of different parameters is considered in order to estimate the cash flow.GANIT J. Bangladesh Math. Soc.Vol. 34 (2014) 89-100

Optimal replenishment decision for retailers with variable demand for deteriorating products under a trade-credit policy

2020 ◽  
Vol 54 (6) ◽  
pp. 1685-1701 ◽  
Author(s):  
Biswajit Sarkar ◽  
Bikash Koli Dey ◽  
Mitali Sarkar ◽  
Sun Hur ◽  
Buddhadev Mandal ◽  
...  
Keyword(s):  
Trade Credit ◽  
Numerical Study ◽  
Global Optimum ◽  
Optimal Decision ◽  
Selling Price ◽  
Credit Policy ◽  
Credit Period ◽  
Deterioration Rate ◽  
Solution Methodology ◽  
Dependent Demand

In this study one obtained the optimal decision of a retailer for the replenishment rate with selling-price and credit-period dependent demand to maximize the profit. A time-varying deterioration rate was considered for those products. A credit-period was offered by the retailer to the end customer to settle the whole payments. The aim of the model was to obtain the maximum profit for the retailer based model. A solution methodology with an algorithm was used to obtain the global optimum profit. An illustrative numerical example was given to test the practical applicability of the model. Numerical study indicated that the profit was at a maximum when the permissible delay-period for payment offered by the suppliers was lies between the permissible delay-time, and the cycle time, offered by the retailer.

scholarly journals Two Level Trade Credit Policy Approach in Inventory Model with Expiration Rate and Stock Dependent Demand under Nonzero Inventory and Partial Backlogged Shortages

2021 ◽  
Vol 13 (23) ◽  
pp. 13493
Author(s):  
Ali Akbar Shaikh ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Amalesh Kumar Manna ◽  
Armando Céspedes-Mota ◽  
Gerardo Treviño-Garza
Keyword(s):  
Trade Credit ◽  
Research Work ◽  
Real Life ◽  
Optimal Number ◽  
Inventory Model ◽  
Inventory Level ◽  
Credit Policy ◽  
Rate Dependent ◽  
Total Profit ◽  
Dependent Demand

In present real life situations, the stock and expiration date directly impact on the demand of an item. In this context, this research work develops an inventory model for stock and expiration rate-dependent demand under a two-level trade credit policy. Specifically, the following three situations are studied: (i) trade credit policy without zero ending inventory; (ii) trade credit policy with zero ending inventory; (iii) trade credit policy with partial backlogged shortages. The proposed inventory model is formulated as a non-linear constrained optimization problem. Some theoretical results are derived, and an algorithm is stated in order to solve the proposed inventory model. The main objective of the inventory model is to determine the optimal cycle length, the optimal ending inventory level, and the optimal number of units displayed which maximize the total profit. Some numerical examples are solved. Finally, a sensitivity analysis is done with the aim to see the impacts of a variation of the input parameters on the decision variables and the total profit.

scholarly journals Estimation of inventory for deteriorating items with non-linear demand considering discount and without discount policy

2016 ◽  
Vol 13 (2) ◽  
pp. 151-164
Author(s):  
Manik Mondol ◽  
M. Forhad Uddin ◽  
M. S. Hossain
Keyword(s):  
Cash Flow ◽  
Opportunity Cost ◽  
Demand Function ◽  
Trade Credit ◽  
Unit Cost ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Credit Policy ◽  
Deterioration Rate ◽  
Linear Demand

This paper develops an inventory model for deteriorating items consisting the ordering cost, unit cost, opportunity cost, deterioration cost and shortage cost. In this inventory model instead of linear demand function nonlinear exponential function of time for deteriorating items with deterioration rate has been considered. The effects of inflation and cash flow are also taken into account under a trade-credit policy of discount and without discount with time. In order to validate the model, numerical examples have been solved by bisection method deploying Matlab.  Further, in order to estimate the cash flow the sensitivity of different parameters is considered.

Non-instantaneous deteriorating inventory model under the joined effect of trade-credit, preservation technology and advertisement policy

Kybernetes ◽  
2019 ◽  
Vol 49 (6) ◽  
pp. 1645-1674 ◽  
Author(s):  
Abu Hashan Md Mashud ◽  
Md. Rakibul Hasan ◽  
Hui Ming Wee ◽  
Yosef Daryanto
Keyword(s):  
Trade Credit ◽  
Optimization Technique ◽  
Inventory Model ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Content Type ◽  
Technology Investment ◽  
Deterioration Rate ◽  
Preservation Technology ◽  
Preservation Technology Investment

Purpose This paper aims to simultaneously consider an inventory model with price and advertisement dependent demand, non-instantaneous deterioration rate with preservation technology investment, partially backlogged shortages and trade credit. Design/methodology/approach This model considered a non-instantaneous deterioration, which starts after a certain storage period with a constant rate. The proposed model focused on two things. The first one is to reduce the deterioration rate by preservation technology investment, and the second one is using an appropriate trade credit period to maximize the total profit. The classical optimization technique is used to solve the problem. Findings The authors found that trade credit, advertising cost, preservation technology affect the total cost and selling price is one of the most important decision variables affecting the model. Practical implications This study provides a reference for a manufacturer and a retailer on making inventory decisions under different pricing, advertisement expense, preservation technology investment and credit strategies. Four cases are presented to illustrate the inventory model. Sensitivity analyses are performed to gain managerial insights for decision-making. Originality/value The study simultaneously considers a non-instantaneous deterioration inventory model, trade-credit, and preservation technology and advertisement policy. From our literature search, no researcher has undergone this type of study.

Trade credit policy of an inventory model with imprecise variable demand: an ABC-GA approach

2019 ◽  
Vol 24 (13) ◽  
pp. 9857-9874 ◽  
Author(s):  
Prasenjit Pramanik ◽  
Manas Kumar Maiti
Keyword(s):  
Trade Credit ◽  
Inventory Model ◽  
Credit Policy ◽  
Variable Demand
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