Effect of learning on the optimal ordering policy of inventory model for deteriorating items with shortages and trade-credit financing

Mandeep Mittal, Mahesh Kumar Jayaswal and Vijay Kumar ()
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Mandeep Mittal: Amity University Uttar Pradesh
Mahesh Kumar Jayaswal: Banasthali Vidyapith
Vijay Kumar: Amity University Uttar Pradesh

International Journal of System Assurance Engineering and Management, 2022, vol. 13, issue 2, No 13, 914-924

Abstract: Abstract Generally, it is considered that all the items in a lot are of good quality in nature. But practically, it is not possible to have 100% good quality items. Assuming this fact, an economic order quantity model has been developed with the policy of trade-credit financing and effect of learning on the decaying items, where the decaying rate follows the Weibull distribution with two parameters. The demand rate is considered as a function of time and shortages occur under the impact of learning for decaying items. This paper studies the performance of the learning effect in the presence of trade-credit financing policy on the decaying items. Finally, retailer’s total profit is maximized with respect to cycle length. Results reveals that retailer’s profit increases due to learning under the credit financing policy. Further, numerical example is illustrated, and comprehensive sensitivity analysis have been depicted to understand the robustness of the proposed model.

Keywords: Learning; Decaying items; Weibull distribution; Trade-credit financing; Shortages; Time-dependent demand (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s13198-021-01351-0

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