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Economic ordering policy for non‐instantaneous deteriorating items with price and advertisement dependent demand and permissible delay in payment under inflation
Author(s) -
Udayakumar R.,
Geetha K.V.,
Sana Shib Sankar
Publication year - 2021
Publication title -
mathematical methods in the applied sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.719
H-Index - 65
eISSN - 1099-1476
pISSN - 0170-4214
DOI - 10.1002/mma.6594
Subject(s) - time value of money , uniqueness , inflation (cosmology) , economic shortage , payment , discounting , value (mathematics) , work (physics) , economics , parameterized complexity , econometrics , mathematics , mathematical optimization , mathematical economics , finance , statistics , algorithm , physics , theoretical physics , mechanical engineering , mathematical analysis , linguistics , philosophy , government (linguistics) , engineering
In recent years, offering credit period by the supplier to the retailer has become a usual strategy. Hence, in the present work, an inventory model for noninstantaneous deteriorating items is framed considering money inflation and time discounting, where a permissible delay period is offered by the supplier as an alternative to price discount. Further, the salvage value associated with deteriorated units is considered, and the shortages allowed are partially backlogged. Focus is made on obtaining the optimal replenishment policy by minimizing the total inventory cost. This is achieved by developing mathematical theorems that determines the existence and the uniqueness of the optimal solutions. Moreover, computational algorithm is designed and illustrated using numerical examples and analysis. Various managerial insights obtained from the analysis are also highlighted.