EconPapers    
Economics at your fingertips  
 

Comprehensive solution procedure for optimizing replenishment policies of instantaneous deteriorating items with stock-dependent demand under partial trade credit linked to order quantity

R. Sundara Rajan () and R. Uthayakumar ()
Additional contact information
R. Sundara Rajan: PSNA College of Engineering and Technology
R. Uthayakumar: The Gandhigram Rural Institute–Deemed University

International Journal of System Assurance Engineering and Management, 2017, vol. 8, issue 2, 1343-1373

Abstract: Abstract Trade credit financing is widely accepted as an inevitable strategy to increase profitability in inventory management. We assume that the supplier offers the retailer a fully permissible delay of M periods if the retailer orders more than or equal to a predetermined order quantity w. We revisit an economic order quantity model for instantaneous deteriorating commodities with inventory level dependent demand rate in a supply chain environment by allowing shortages which are partially backlogged. This model also incorporates aspects such as complete and no backlogging. The necessary and sufficient conditions for the existence and uniqueness of this model using the lemmas are investigated. An effective algorithm is proposed to obtain the optimal replenishment policies of this model using SCILAB 5.5.0 to resolve the problem. Finally, we solve numerical examples to substantiate the theoretical results of the underlying model and obtain some managerial insights.

Keywords: EOQ; Partial trade credit; Complete backlogging; Lost sales; Stock-dependent demand (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s13198-017-0605-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ijsaem:v:8:y:2017:i:2:d:10.1007_s13198-017-0605-9

Ordering information: This journal article can be ordered from
http://www.springer.com/engineering/journal/13198

Access Statistics for this article

International Journal of System Assurance Engineering and Management is currently edited by P.K. Kapur, A.K. Verma and U. Kumar

More articles in International Journal of System Assurance Engineering and Management from Springer, The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:spr:ijsaem:v:8:y:2017:i:2:d:10.1007_s13198-017-0605-9