Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments

Rabin Kumar Mallick (), Kartik Patra () and Shyamal Kumar Mondal ()
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Rabin Kumar Mallick: Vidyasagar University
Kartik Patra: Vivekananda Satavarshiki Mahavidyalaya
Shyamal Kumar Mondal: Vidyasagar University

Annals of Operations Research, 2020, vol. 292, issue 1, No 16, 369 pages

Abstract: Abstract It is seen that the trade credit period has an important role in real business world. In this article, an inventory model has been developed by considering stochastic lead time demand with lead time crashing cost. Here, also to get the impact between credit period and lead time, a lead time dependent credit period has been considered. In this model, considering partial back-order, the effect of lost sale has been included. Under the above considerations, an inventory model has been optimized in the parlance of infinite time horizon. Here, three objective functions have been developed on the basis of the position of credit period and business period. Finally, to study the feasibility of the model, three different numerical examples have been illustrated with sensitivity analysis with respect to a parameter.

Keywords: Credit period; Crashing cost; Stochastic demand; Lead time; Inventory model (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10479-018-3033-6

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