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An Application of PSO to Study Joint Policies of an Inventory Model with Demand Sensitive to Trade Credit and Selling Price While Deterioration of Item Being Controlled Using Preventive Technique

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Soft Computing in Inventory Management

Part of the book series: Inventory Optimization ((IO))

Abstract

This article contributes a joint inventory model for single deteriorating item with acceptable delay in payment. Effect of deterioration is considered and it is controlled by making an appropriate investment in preservation technology. The retailer gets credit period from the manufacturer with a deal to share portion of profit during this term and settle the accounts at the end of it. To boost the sales retailer permits credit period to a fraction of customers. To investigate the scenario mathematical model has been developed representing different cases. The corresponding problem is a nonlinear constrained optimization problem which is optimized by deploying Particle Swarm Optimization (PSO) algorithm. The objective is to cleverly decide unit selling price with suitable investment for preventive measures, cycle time and extended credit period; which maximizes the total profit. Lastly, to authenticate the model examples are presented and to examine the inventory parameters sensitivity analysis is carried out.

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Authors and Affiliations

  1. Department of Mathematics, School of Technology, Pandit Deendayal Petroleum University, Raisan, Gandhinagar, Gujarat, 382007, India

    Poonam Mishra

  2. Institute of Management, Nirma University, Sarkhej-Gandhinagar Highway, Ahmedabad, 382481, India

    Azharuddin Shaikh

  3. Department of Physical Science, Institute of Advance Research, Koba Institutional Area, Gandhinagar, Gujarat, 382426, India

    Isha Talati

Authors
  1. Poonam Mishra
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  2. Azharuddin Shaikh
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  3. Isha Talati
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Editor information

Editors and Affiliations

  1. Department of Mathematics, University of Gujarat, Ahmedabad, Gujarat, India

    Nita H. Shah

  2. Department of Mathematics, Amity Institute of Applied Sciences, Amity University, Noida, Uttar Pradesh, India

    Mandeep Mittal

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Mishra, P., Shaikh, A., Talati, I. (2021). An Application of PSO to Study Joint Policies of an Inventory Model with Demand Sensitive to Trade Credit and Selling Price While Deterioration of Item Being Controlled Using Preventive Technique. In: Shah, N.H., Mittal, M. (eds) Soft Computing in Inventory Management. Inventory Optimization. Springer, Singapore. https://doi.org/10.1007/978-981-16-2156-7_2

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