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An inventory model of price and stock dependent demand rate with deterioration under inflation and delay in payment

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Abstract

This paper deals with the economic order quantity model for deteriorating items with price and stock dependent demand rate, where deterioration is constant. We have noticed the effect of shortage under inflation and taken into consideration the condition of permissible delay in payment. In first case, the credit period is less than or equal to the cycle time for settling the account and secondly the credit period is greater than the cycle time for settling the account. Then we have obtained the condition for minimizing the total cost. Finally, the results are illustrated by a numerical example for different cases and sensitivity analysis is carried out to analyze the effect of the parameters on the optimal solution.

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Acknowledgments

The authors are heartily thankful to the editor and reviewers for their detailed and constructive valuable comments that help us to improve the quality of the paper.

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Authors and Affiliations

  1. Department of Mathematics, Bengal Engineering and Science University, Shibpur, Howrah, 711103, India

    Shilpi Pal & G. P. Samanta

  2. Department of Mathematics, National Institute of Technology-Puducherry, Karaikal, 609 605, India

    G. S. Mahapatra

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  1. Shilpi Pal
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  2. G. S. Mahapatra
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  3. G. P. Samanta
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Correspondence to G. S. Mahapatra.

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Pal, S., Mahapatra, G.S. & Samanta, G.P. An inventory model of price and stock dependent demand rate with deterioration under inflation and delay in payment. Int J Syst Assur Eng Manag 5, 591–601 (2014). https://doi.org/10.1007/s13198-013-0209-y

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  • DOI: https://doi.org/10.1007/s13198-013-0209-y

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