Open AccessAn economic production quantity (EPQ) model for a deteriorating item with partial trade credit policy for price dependent demand under inflation and reliability
Author(s) -
Ali Akbar Shaikh,
Leopoldo Eduardo Cárdenas–Barrón,
Amalesh Kumar Manna,
Armando Céspedes-Mota
Publication year - 2021
Publication title -
yugoslav journal of operations research/yugoslav journal of operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 21
eISSN - 2334-6043
pISSN - 0354-0243
DOI - 10.2298/yjor200515036s
Subject(s) - economics , trade credit , production (economics) , profit (economics) , econometrics , inflation (cosmology) , reliability (semiconductor) , microeconomics , work (physics) , sensitivity (control systems) , mechanical engineering , power (physics) , physics , accounting , quantum mechanics , electronic engineering , theoretical physics , engineering
It is well-known that the production-inventory problem for deteriorating items in the supply chain is a challenge when deciding on how many products to manufacture to obtain a maximum total profit. This research work develops an economic production quantity model for a deteriorating item under partial trade credit policy considering inflation, the effect of reliability factor of a production system, and the demand depending on the price of a product whose selling price is optimized. The production inventory model is formulated as a nonlinearly constrained optimization problem by analyzing different cases. Finally, through a numerical example, a sensitivity analysis is performed to study the effect of different parameters, changing one parameter at a time and keeping others fixed at their original values.