Optimal trade-credit policy for perishable items deeming imperfect production and stock dependent demand

Self Cite

The objective of this study is to develop of an inventory policy for deteriorating items, in which demand for the products is stock dependent and the retailer invests in preservation technology to reduce the rate of product deterioration. In many real-life situations, for certain types of consumer goods, the consumption rate is sometimes influenced by the stock-level. It is usually observed that a large pile of goods on a shelf in a supermarket will lead the customer to buy more and then generate higher demand. The consumption rate may go up or down with the onhand stock level. This paper is developed with the realistic conditions of demand, allowable credit period, partial backlogging and variable ordering cost. A solution procedure is given to find the optimal preservation technology cost and total cost of the system. A numerical example and sensitivity analysis are presented to illustrate the model.

Section: Introductionmentioning

confidence: 99%

An economic order quantity model for deteriorating products having stock dependent demand with trade credit period and preservation technology

Singh¹,

Khurana²,

Tayal³

2016

Self Cite

“…In this paper, due to limited stock capability, the spare ordered quantity was returned to supplier. Singh and Sharma (2014) introduced an optimal trade-credit policy for perishable items deeming imperfect production and stock dependent demand. Tayal et al (2014b) also presented another model of inventory, as an alternate of alternative market and in relation to seasonal goods and in terms of deteriorating nature.…”

Section: Introductionmentioning

confidence: 99%

Optimal pricing and ordering policy for deteriorating items with price and stock dependent demand and partial backlogging

Khurana¹,

Chaudhary²

2016

This study deals with an economic order quantity model to find out the optimal selling price and optimal ordering quantity for the products which deteriorates over time. The demand for the products depends on available stock level and selling price of the products. The shortages are allowed, and it is assumed that the occurring shortages are partially backlogged. Depending on the rate of backlogging two models are presented in this study. The first model assumes a constant rate of backlogging, while in second model the backlogging rate is assumed to be dependent on waiting time. Numerical example and sensitivity analysis are presented to illustrate the results of the proposed model.

“…Pattnaik (2013) developed an inventory model for optimization in an instantaneous economic order quantity (EOQ) incorporated with promotional effort cost, variable ordering cost and units lost due to deterioration. Singh and Sharma (2014) presented an optimal trade-credit policy for perishable items deeming imperfect production in which they considered the consumption rate as stock dependent. introduced a multi item inventory model for deteriorating products and allowable shortages.…”

Section: Introductionmentioning

confidence: 99%

An inventory model for deteriorating items with seasonal products and an option of an alternative market

Tayal¹,

Singh²,

Sharma³

2015

For today's high competitive market, when immensity purchasing of inventory becomes convenient or obligatory, to discover an alternative market in order to maximize the revenue earned is a tradition. In this paper, we considered an inventory model for seasonal products with Weibull rate of deterioration having two potential markets, say, primary and alternate. To handle the inventory up to the next season will result an increase in total cost. So it is a favorable task to transfer the remaining stock to the alternate market even at a slightly differ in selling price. Solution procedure, numerical examples and sensitivity analysis for different variables are presented to illustrate the model.