An Inventory Model for Perishable Items with Time Varying Stock Dependent Demand and Trade Credit under Inflation

Abstract

In the classical inventory models, it is assumed that the retailer pays to the supplier as soon as he received the items and in such cases the supplier offers a cash discount or credit period (permissible delay) to the retailer. In this paper we presented an inventory model for perishable items with time varying stock dependent demand under inflation. It is assumed that the supplier offers a credit period to the retailer and the length of credit period is dependent on the order quantity. The purpose of our study is to minimize the present value of retailer's total cost. Numerical examples are also given to demonstrate the presented mode.

Effect of Variable Inflation on Supply Chain Management in FMCG Sector with Single Supplier-Multiple Retailers and Trade Credit

“…In 2014 model by Wu and Zhao [18], took inventory and time-dependent demand. In 2015, Kumar and Rajput [24], worked on time and stock-dependent demand along with inflation and credit policy. Saha and Sen [25] added selling price-dependent demand along with time dependency in their inflation-based optimal inventory model.…”

Fuzzy multi-item inventory model with time varying stock dependent demand under partial backlogging

“…In 1970, R. E. Bellman and L. A. Zadeh [2] introduced decision-making in fuzzy environment. S. Kumar and U.S. Rajput [3] gave concept an inventory model for perishable items with time varying stock dependent demand and trade credit under inflation. In 2010, C. K. Tripathy and L. M. Pradhan developed [10] an EOQ model for weibull deteriorating items with power demand and partial backlogging.…”