An inventory model for imperfect quality items considering learning effects and partial trade credit policy

Moradi, Soosan; Gholamian, Mohammad Reza; Sepehri, Arash

doi:10.1007/s12597-022-00602-3

Cited by 12 publications

(3 citation statements)

References 28 publications

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“…Yang et al [9] proposed that a supplier may offer its retailers either a cash discount or credit period to increase sales and reduce default risks. Moradi et al [10] constructed an inventory model for imperfect quality items considering learning effects and partial trade credit policy. Lin et al [11] discussed optimizing order policy and credit term for items with inventory-level-dependent demand under trade credit limit.…”

Section: Literature Reviewmentioning

confidence: 99%

Imperfect Production–Inventory Models for Deteriorating Items With Carbon Cap-and-Trade Policy and Advance-Cash- Credit Payment

Lu,

Gu,

Yang

et al. 2024

IEEE Access

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Global warming, driven by excessive carbon emissions, harms nature and society. Governments' carbon reduction policies are crucial for sustainable industrial growth, integrating eco-friendly practices into production decisions. In addition, sellers often demand upfront payment for goods as a performance guarantee, receive a portion upon delivery, and finalize the transaction on credit. This advancecash-credit (ACC) payment scheme is becoming increasingly common. Based on the above, this study proposes a production-inventory model with a carbon cap-and-trade policy and an ACC payment scheme and discusses optimal production and replenishment strategies. We also consider deteriorating raw materials, deteriorating finished products, and an imperfect production system. Mathematical methods and numerical examples are discussed to clarify the solution process, and a sensitivity analysis of parameters is performed. We demonstrate that under the two-stage trade credit and ACC scheme, a larger credit payment component enables the production-inventory system to generate higher total profits, and that a lower charged interest, higher earned interest, or later overall payment (for the ACC scheme) leads to lower carbon emissions. Furthermore, changing carbon emission quota does not affect annual carbon emissions but increasing carbon trading price does, thereby encouraging companies to reduce annual carbon emissions under a carbon capand-trade policy.

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Section: Literature Reviewmentioning

confidence: 99%

Imperfect Production–Inventory Models for Deteriorating Items With Carbon Cap-and-Trade Policy and Advance-Cash- Credit Payment

Lu,

Gu,

Yang

et al. 2024

IEEE Access

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“…From the known details, in the literature, the model for imperfect quality deteriorating items with two levels of inspection and learning with partial credit payment (10) classified the new customer as good and bad debt is rarely investigated (11) . The ideology and motivation of this paper (12,13) is to find out the maximum profit for the retailer and to reduce the imperfect quality items (14) , and through the learning in inspection (15) , reduce the misclassification of products is obtained (16) . In some models, the researchers analysed the results for the non-instantaneous deterioating items with inspection policy and other offers has been considered (17,18) .…”

Section: Introductionmentioning

confidence: 99%

Impact of Learning on Ordering Policy for Deteriorating Imperfect Quality Items with Promotion Dependent Demand, Partial Trade-Credit and Shortages

Priyadharshini,

Jayasankari,

Uthayakumar

2024

IJST

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Objective: The objective of the developed inventory model is to find the optimal solution for the retailer, while performing inspection for the defectives, and also to offer partial credit periods, where shortages are allowed. Methods: To derive the required solution which benefits the retailer, the partial derivatives method for the decision variables where used and to solve the complicated differential equations the necessary and sufficient conditions has been derived and the theorem and its proofs are given. Findings: In this research findings, the optimal credit period policy and promotional effort dependent demand pattern that offers more profit to the retailer, provided with inspection policy for finding defective items in the lot. Shortages are allowed and completely backordered. Numerical examples and sensitivity analysis are performed to verify the reliability of the developed model. Novelty: This study presents a new model wherein the retailer offers credit period and with shortages that will apt the real life situation as the model developed here is for deteriorating items, which is inevitable to maintain the perfect system. Keywords: MultiEchelon Inventory Model, Sustainability, Shortages, Credit Period Offers, Learning In Inspection

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“…Kumar et al [20] developed a sustainable fuzzy inventory model for deteriorating items with partial back ordering under the effect of learning. One may refer to the works of [12], [18], and [30] for additional works on the inventory model under the effect of learning.…”

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confidence: 99%

An inventory model under power pattern demand having trade credit facility and preservation technology investment with completely backlogged shortages

Patra,

Paikray,

Dutta

2024

JIMO

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In real-world inventory problems, the deterioration rate is usually treated as an uncontrolled factor. However, by adopting certain preservation techniques, such deterioration rate can be controlled up to a desired level. Moreover, in certain business affairs, the supplier also provides a permissible delay in payment to encourage the vendors to have further sales. In this paper, we develop an inventory model that considers the power pattern demand under trade credit, permissible completely backlogged shortages, and suitable investment in preservation technology. Additionally, to make the model more realistic, we apply the learning effect to the holding costs. We develop the mathematical model of the problem and its solving policy in both crisp and fuzzy environments. The main purpose of the model is to obtain the optimum preservation technology-based cost and cycle time that maximize the overall profit. Furthermore, to validate our findings, we consider numerical examples and subsequently demonstrate the concavity of the profit function via Mathematica 11.1.1 software. Finally, we study the sensitivity analysis and accordingly present several managerial insights for the benefit of inventory managers.

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An inventory model for imperfect quality items considering learning effects and partial trade credit policy

Cited by 12 publications

References 28 publications

Imperfect Production–Inventory Models for Deteriorating Items With Carbon Cap-and-Trade Policy and Advance-Cash- Credit Payment

Imperfect Production–Inventory Models for Deteriorating Items With Carbon Cap-and-Trade Policy and Advance-Cash- Credit Payment

Impact of Learning on Ordering Policy for Deteriorating Imperfect Quality Items with Promotion Dependent Demand, Partial Trade-Credit and Shortages

An inventory model under power pattern demand having trade credit facility and preservation technology investment with completely backlogged shortages

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