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- Title
Optimal credit period and ordering quantity for credit dependent trended demand and deteriorating items with maximum lifetime.
- Authors
Shah, Nita H.; Shah, Digeshkumar B.; Patel, Dushyantkumar G.
- Abstract
In this paper, an inventory system is analyzed regarding a trended demand. The seller offers its buyer a credit period for settling the account, which attracts more buyers and enhances market demand. However, the offer of credit period leads to default risk for the supplier. The units in inventory are deteriorating continuously and also have definite maximum lifetime. The aim is to maximize the profit of the retailer. Numerical examples are given to validate the developed mathematical model. Sensitivity analysis is performed to obtain the critical inventory parameters and deduce the managerial strategies.
- Subjects
INVENTORY control; ECONOMIC demand; PROFITABILITY; MATHEMATICAL models; SENSITIVITY analysis
- Publication
Control & Cybernetics, 2015, Vol 44, Issue 2, p311
- ISSN
0324-8569
- Publication type
Article