Inventory Model with Inflation under Credit Period and Shortage
Anjali Harit1, Anurag Sharma2, S.R. Singh3
1Anjali Harit*, Department of Mathematics, D.N. College, Meerut, India.
2Anurag Sharma, Department of Mathematics, D.N. College, Meerut, India.
3S. R. Singh, department of mathematics, C. C. S. University, Meerut, Uttar Pradesh, India.
Manuscript received on June 01, 2020. | Revised Manuscript received on June 08, 2020. | Manuscript published on June 30, 2020. | PP: 1050-1055 | Volume-9 Issue-5, June 2020. | Retrieval Number: E9727069520/2020©BEIESP | DOI: 10.35940/ijeat.E9727.069520
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: 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.
Keywords: Inventory, Price-dependent Demand, Non-instantaneous deterioration, Inflation, Trade credit, Shortage Backordering.