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An inventory model for non-instantaneous deteriorating items with preservation technology and multiple credit periods-based trade credit financing via particle swarm optimization

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Abstract

The trade credit policy plays a significant role to minimize the risk or maximize the revenue from a business. Thus, the consideration of trade credit policy with single or multiple credit period(s) makes an inventory model more realistic. This work aims to establish a preservation technology-based non-instantaneous deteriorated inventory model considering multi-period-based trade credit policy and variable demand dependent on selling price of the item and displayed inventory level. For different credit periods, different rates of interest are charged. Also, different cases are investigated in formulating the mathematical model. Then to maximize the average profits in all these cases, different advanced variants of quantum-behaved particle swarm optimization techniques are applied. Thereafter all the cases of the proposed model are justified with the help of five numerical examples. Finally, in order to study the effect of the changes of different system parameters on the optimal policy, the sensitivity analyses are performed, and the work is concluded with some real-life implications and future research plans.

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Acknowledgement

The authors express their sincere thanks to the editor and the anonymous reviewers for their valuable comments and suggestions which have led to a significant improvement of the manuscript. The second author would like to thank University Grants Commission for providing the Dr. D. S. Kothari Post-Doctoral Fellowship (DSKPDF) through The University of Burdwan to accomplish this research (Vide Research Grant No.F.4-2/2006 (BSR)/MA/18-19/0023). Also the fourth author to acknowledge the financial support provided by UGC-BSR scheme India for this research (Memo No: F.30-425/2018(BSR) dated 04.01.2019).

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  1. Department of Mathematics, The University of Burdwan, Burdwan, 713104, India

    Subhash Chandra Das, Amalesh Kumar Manna, Md Sadikur Rahman, Ali Akbar Shaikh & Asoke Kumar Bhunia

  2. Department of Mathematics, Chandrapur College, Burdwan, 713145, India

    Subhash Chandra Das

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  1. Subhash Chandra Das
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  2. Amalesh Kumar Manna
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  5. Asoke Kumar Bhunia
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Correspondence to Ali Akbar Shaikh.

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Das, S.C., Manna, A.K., Rahman, M.S. et al. An inventory model for non-instantaneous deteriorating items with preservation technology and multiple credit periods-based trade credit financing via particle swarm optimization. Soft Comput 25, 5365–5384 (2021). https://doi.org/10.1007/s00500-020-05535-x

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