Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

In this paper, we formulate and solve an economic order quantity model with default risk. Our main purpose is to investigate retailer’s optimal replenishment time credit period for deteriorating items under selling price-dependent demand while maximizing profit per unit time. Here, shortages are allowed partially backlogged interested customers. We show that not only exist but they also unique. the proposed problem analytically. An algorithm presented derive solution of model. The mathematical evaluated by numerical examples. use Mathematica obtain a global maximum cycle A sensitivity analysis respect major parameters performed in examine stability our At end conclusions drawn outlook possible future directions depicted.