Usually, in real life business, supplier is willing to provide a retailer a trade credit period if the retailer orders a large quantity. So the retailer purchases more goods than that can be stored in his own warehouse and these excess quantities are stored in a rented warehouse. In practice, we observe that the demand depends on the selling price and the retailer offers the partial trade credit option to his customers. In this paper, we develop an economic-order-quantity-based model with perishable items and twostorage facility as a profit maximization problem under retailer's partial trade credit policy and price dependent demand. Mathematical theorems are developed to determine optimal inventory policy for the retailer and numerical examples are given to illustrate the theory. We also obtain a lot of managerial phenomena.
Now-a-days the financial situation has changed at different countries due to inflation i.e. time value of money. As inflation increases the value of money goes down and it erodes the future worth of savings and forces one for more current spending. Usually, these spending are on peripherals and luxury items that give rise to demand of these items. In this paper, we intend to develop an inventory model for deteriorating items under inflationary conditions using a discounted cash flow (DCF) approach over a finite planning horizon. The demand rate is a function of inflation. In real life systems, some but not all customers will wait for the next order to satisfy their demands during stockout period. This situation is modeled by the consideration of partial backordering under negative exponential distribution of waiting time. An algorithm is developed to find optimal policy and the sensitivity analysis is studied with the help of numerical examples.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.