Multi-echelon Inventory Model for Deteriorating Items with Demand Dependent on Stock

Authors

  • Dr. Rakhi Trivedi, Dr. Richa Agarwal

Abstract

This paper on inventory modeling for deteriorating products with demand dependent on stock which is under inflation. Assumption of this paper is that credit period is given to the retailer by the supplier, and on the basis of order quantity the length of credit period will be decided. When the credit period is going to finish then purchasing cost will be paid by the retailer. Supplier will not charge any interest only if the retailer earns the enough amount to pay the cost of purchasing. Retailer has to pay the interest after credit period for the unpaid balance. Retailer will pay the interest and rest balance after replenishment cycle. Objective of this paper is to minimize the retailer cost. We present the optimal cycle length to minimize the total cost. Numerical solutions are presented in this research paper to get the optimal solution.

Published

2020-02-29

Issue

Section

Articles