Inventory Model for Deteriorating Items with Stock Dependent Demand under the Effect of Inflation and Trade Credit Period

In this study a deterministic inventory model for deteriorating items with stock dependent demand is developed. In this model the shortages are allowed and partially backlogged and the effect of inflation rate and delay in payments are discussed. This paper establishes an inventory model for the deteriorating items and stock dependent demand rate under inflation when the supplier offers a permissible delay to the purchaser. Then an optimal solution is obtained to find the relevant total optimal cost in two cases. CASE-1: In this case, the length of the period with the positive inventory of items is longer than the credit period. CASE-2: In this case, the permissible delay is longer than the length of the period with the positive inventory of items . The interest of purchasing cost is charged for the delay of payments by the retailers. In both the cases the total average inventory cost per unit time is minimized.