Cash discount associated permissible delay sensitive economic order quantity systems in favour of deteriorating commodity of Weibull distribution receptive demand and shortages

R.P. Tripathi and Hari Shyam Pandey

International Journal of Operational Research, 2023, vol. 46, issue 3, 416-435

Abstract: A cash discount is a deduction permitted by a number of retailers for items in order to stimulate consumers to pay within a particular time. The suppliers and contributors presenting a cash reduction will pass on to it as a sales price cut, while the consumer will submit to the same concession as a procure money off. More sales causes more purchase; it is due to cash discount or more demand. Cash discount is beneficial for both vendor and buyers. In most cases, innovation is the most helpful for seller in order to motivate purchaser. When the retailer allows a discount, this is verified as a diminution of revenues, and is naturally a deduction to an opposing revenue account. In this study, demand is measured by two Weibull parameters. Shortages and deterioration both are taken into account. The principal objective of this work is to locate the most favourable replenishment planning so that total cost is minimised. Mathematical models are consequential under four dissimilar circumstances. The optimal solution is obtained by a solution procedure. Numerical designs are offered in order to confirm the expected model of the study. Sensitivity analysis is specified for distinction by dissimilar parameters. Mathematics 7.0 is used for finding numerical outcomes.

Keywords: cash-discount; trade credits; Weibull distribution; deterioration; cycle time; demand. (search for similar items in EconPapers)
Date: 2023
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