Open AccessInventory Model with Inflation under Credit Period and Shortage
Author(s) -
Anjali Harit,
Anurag Sharma,
Sundaram Singh
Publication year - 2020
Publication title -
international journal of engineering and advanced technology
Language(s) - English
Resource type - Journals
ISSN - 2249-8958
DOI - 10.35940/ijeat.e9727.069520
Subject(s) - economic shortage , profit (economics) , payment , inflation (cosmology) , order (exchange) , sensitivity (control systems) , econometrics , economics , function (biology) , computer science , constant (computer programming) , mathematical optimization , operations research , microeconomics , mathematics , finance , engineering , linguistics , philosophy , physics , programming language , electronic engineering , evolutionary biology , government (linguistics) , theoretical physics , biology
In this study, an deterministic inventory model based on the concept of permissible delay in payments is discussed. Demand is assumed to be price dependent, and a constant price function represents it. Shortages are allowed and partially backlogged. In the realistic environment, it observed that there are several items like dry fruits, vegetables, grocery, and fruits, etc. which deteriorate after a time gap. So this model is also based on non-instantaneous deterioration. This study aims is to optimize the optimal order level and selling price to maximize the retailer`s total profit. Finally, numerical examples solved by using a proposed algorithm to show the validity of the model and sensitivity analysis done on parameters..