Skip to main content
SpringerLink
Log in

An EOQ Model with Breakable Items Considering Stock Dependent Demand and Lead Time Dependent Credit Period

  • Original Paper
  • Published:
International Journal of Applied and Computational Mathematics Aims and scope Submit manuscript

Abstract

In this paper, an EOQ model for breakable items to a retailer has been studied. Here, demand of the business is stock dependent. The breakability of the items is dependent on stock and holding cost. Here, a credit period has been offered to the retailer, which depends on lead time. Stock dependent demand and breakability are balanced by the lead time dependent credit period. The main intention of the present model is to detect the optimal order quantity, optimal lead time and to maximize the total profit of the whole business. To test our proposed model, two numerical examples are also illustrated.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  1. Banu, A., Mondal, S.K.: Analysis of credit linked demand in an inventory model with varying ordering cost. Springerplus 5(1), 926–939 (2016)

    Article  Google Scholar 

  2. Chopra, S., Reinhardt, G., Dada, M.: The effect of lead time uncertainty on safety stocks. Decision Sci. 35(1), 1–24 (2004)

    Article  Google Scholar 

  3. Das, B.C., Das, B., Mondal, S.K.: Integrated supply chain model for a deteriorating item with procurement cost dependent credit period. Comput. Ind. Eng. 64(3), 788–796 (2013)

    Article  Google Scholar 

  4. Das, B.C., Das, B., Mondal, S.K.: An integrated inventory model with delay in payment for deteriorating item under Weibull distribution and advertisement cum price-dependent demand. Int. J. Oper. Res. 20(3), 341–368 (2014)

    Article  MathSciNet  Google Scholar 

  5. Das, B.C., Das, B., Mondal, S.K.: Optimal transportation and business cycles in an integrated production-inventory model with a discrete credit period. Transp. Res. Part E 68, 1–13 (2014)

    Article  Google Scholar 

  6. Das, B.C., Das, B., Mondal, S.K.: An integrated production inventory model under interactive fuzzy credit period for deteriorating item with several markets. Appl. Soft Comput. 28, 453–465 (2015)

    Article  Google Scholar 

  7. Glock, C.H.: Lead time reduction strategies in a single-vendor-single-buyer integrated inventory model with lot size-dependent lead times and stochastic demand. Int. J. Prod. Econ. 136(1), 37–44 (2012)

    Article  Google Scholar 

  8. Goh, M.: EOQ models with general demand and holding cost functions. Eur. J. Oper. Res. 73, 50–54 (1994)

    Article  Google Scholar 

  9. Goyal, S.K.: Economic order quantity under conditions of permissible delay in payments. J. Oper. Res. 36(4), 335–338 (1985)

    Article  Google Scholar 

  10. Guria, A., Mondal, S.K., Maiti, M.: A two-ware house EOQ model with two-level delay in payment. Int. J. Oper. Res. 15(2), 170–194 (2012)

    Article  MathSciNet  Google Scholar 

  11. Guria, A., Das, B., Mondal, S.K., Maiti, M.: Inventory policy for an item with inflation induced purchasing price, selling price and demand with immediate part payment. Appl. Math. Modell. 37(1–2), 240–257 (2013)

    Article  MathSciNet  Google Scholar 

  12. Harris, F.: Operations and Cost. Factory Management Service, Chicago, A.W. Shaw Co. (1915)

  13. Hayya, J.C., Harrison, T.P., He, X.J.: The impact of stochastic lead time reduction on inventory cost under order crossover. Eur. J. Oper. Res. 211, 274–281 (2011)

    Article  MathSciNet  Google Scholar 

  14. Hoque, M.A.: A vendor-buyer integrated production-inventory model with normal distribution of lead time. Int. J. Prod. Econ. 144, 409–417 (2013)

    Article  Google Scholar 

  15. Jha, J.K., Shanker, K.: Single-vendor multi-buyer integrated production-inventory model with controllable lead time and service level constraints. Appl. Math. Model. 37, 1753–1767 (2013)

    Article  MathSciNet  Google Scholar 

  16. Liberatore, M.J.: Planning Horizons for a stochastic lead-time inventory model. Oper. Res. 25(6), 977–988 (1977)

    Article  MathSciNet  Google Scholar 

  17. Mallick, R.K., Patra, K., Mondal, S.K.: Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments. Ann. Oper. Res. 292, 341369 (2020)

    Article  MathSciNet  Google Scholar 

  18. Mallick, R.K., Manna, A.K., Mondal, S.K.: A supply chain model for imperfect production system with stochastic lead time demand. J. Manag. Anal. 5(4), 309–333 (2018)

    Google Scholar 

  19. Mallick, R.K., Mondal, S.K., Dey, J.K.: Analysis of lead time on permissible delay in payments in an inventory model including the lead time crashing cost. Adv. Math. Models Appl. 3(2), 142–163 (2018)

    Google Scholar 

  20. Mandal, M., Maiti, M.: Inventory model for damageable items with stock dependents demand and shortages. Opsearch 34(3), 155–166 (1997)

    Article  MathSciNet  Google Scholar 

  21. Manna, A.K., Das, B., Dey, J.K., Mondal, S.K.: Two layers green supply chain imperfect production inventory model under bi-level credit period T\(\acute{E}\)KHNE. Rev. Appl. Manag. Stud. 73, 1–19 (2017)

    Google Scholar 

  22. Manna, A.K., Dey, J.K., Mondal, S.K.: Imperfect production inventory model with production rate dependent defective rate and advertisement dependent demand. Comput. Ind. Eng. 104, 9–22 (2017)

    Article  Google Scholar 

  23. Maragatham, M., Gnanvel, G.: A purchasing inventory model for breakable items with permissible delay in payments and price discount. Ann. Pure Appl. Math. 15(2), 305–314 (2017)

    Article  Google Scholar 

  24. McAfee, R.P., Velde, V.: Dynamic pricing with constant demand elasticity. Prod. Oper. Manag. 17(4), 432–438 (2008)

    Article  Google Scholar 

  25. Raa, B., Aghezzaf, E.H.: Designing distribution patterns for long-term inventory routing with constant demand rates. Int. J. Prod. Econ. 112, 255–263 (2008)

    Article  Google Scholar 

  26. Shah, N.H., Cardenas-Barron, L.E.: Retailer’s decision for ordering and credit policies for deteriorating items when a supplier offers order-linked credit period or cash discount. Appl. Math. Comput. 259, 569–578 (2015)

  27. Taleizadeh, A.A., Nematollahi, M.: An inventory control problem for deteriorating items with back-ordering and financial considerations. Appl. Math. Model. 38, 93–109 (2014)

    Article  MathSciNet  Google Scholar 

  28. Teng, J.T., Ouyang, L.Y., Cheng, M.C.: An EOQ model for deteriorating items with power-form stock-dependent demand. Inf. Manag. Sci. 16(1), 1–16 (2005)

    MathSciNet  MATH  Google Scholar 

  29. Teng, J.T., Min, J., Pan, Q.: Economic order quantity model with trade credit financing for non-decreasing demand. Omega 40, 328–335 (2012)

    Article  Google Scholar 

  30. Van Eijs, M.J.G.: A note on the joint replenishment problem under constant demand. J. Opl Res. Soc. 44(2), 185–191 (1993)

    Article  Google Scholar 

Download references

Acknowledgements

The authors express their heartfelt gratitude and boundless regards to Vidyasagar University to giving opportunity of research.

Author information

Authors and Affiliations

  1. Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, 721 102, W.B., India

    Rabin Kumar Mallick & Shyamal Kumar Mondal

  2. Department of Mathematics, Department of Mathematics, Vivekananda Satavarshiki Mahavidyalaya, Manikpara, Paschim Medinipur, 721513, W.B., India

    Kartik Patra

Authors
  1. Rabin Kumar Mallick
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kartik Patra
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Shyamal Kumar Mondal
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

The model has been developed and analyzed by all the authors together. All authors read and approved the final manuscript.

Ethics declarations

Conflict of interest

On behalf of all authors, the corresponding author states that there is no conflict of interest.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Mallick, R.K., Patra, K. & Mondal, S.K. An EOQ Model with Breakable Items Considering Stock Dependent Demand and Lead Time Dependent Credit Period. Int. J. Appl. Comput. Math 7, 231 (2021). https://doi.org/10.1007/s40819-021-01165-5

Download citation

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s40819-021-01165-5

Keywords

Search

Navigation