Effect of credit financing on the supply chain for imperfect growing items

Abstract

Several EOQ models have developed over time to guarantee that the appropriate quantity of inventory is ordered in every batch, so that a firm does not have to place orders too frequently or have an excess of inventory on hand. Inventory management, or the inspection of the ordering, storing, and utilization of a company's inventory, necessitates the use of EOQ models. This paper aims at developing an EOQ model when the supplier offers the trade credit policy to the buyer, for a particular class of items that is, growing items. However, it is not always necessary for all goods to be of perfect quality. There may also be some defective goods. Keeping this in mind, a wide-ranging scientific model has been intended, followed by a specific numerical model which is represented with the help of numerical examples. Sensitivity research is presented to assess the influence of the model's key factors taking into consideration it’s decision variables and the objective function.

An Inventory Model for Growing Items When the Demand Is Price Sensitive with Imperfect Quality, Inspection Errors, Carbon Emissions, and Planned Backorders

“…[10] Khalilpourazari & Pasandiddeh [11] Malekitabar et al [12] Nobil & Taleizadeh [13] Eveline & Ritha [14] Garza Cabello [15] Sebatjane & Adetunji [16] Sebatjane & Adetunji [17] Gharaei & Almehddawe [18] Hidayat et al [19] Mokhtari et al [20] Nishandhi [21] Pourmohammad-Zia & Karimi [22] Afzal & Alfares [23] Sebatjane [24] Rezaei [2] Sebatjane & Adetunji [42] Sebatjane [43] Abbasi et al [44] Sharma & Mittal [45] Sharma & Saraswat [46] De la Cruz-Márquez et al…”

“…Abbasi et al [44] introduced a model of growing EOQ to maximize the total profit that determines the optimal number of goods to be ordered at the start of a growth cycle. Sharma and Mittal [45] analyzed a mathematical model specifically designed for growing items, such as chickens, to optimize inventory and maximize the overall profit for suppliers while considering the option of deferred payments.…”