An Inventory Model with Items under Inflation and Time Dependent Demand Rate When Delay in Payment Is Permissible
نویسندگان
چکیده
This paper develops an inventory model for non deteriorating items with time dependent demand rate of production with constant inflation rate. In this model shortages are not allowed, the effect of inflation rate and delay in payments are discussed. In the study mathematical models are also derived under two different cases, i.e. Case-I the credit period is less than or equal to the cycle time for settling the account; Case-II the credit period is greater than the cycle time for settling the account. Beside, expressions for the inventory system’s total cost are derived for these two cases. Computational procedure is proposed to obtain the optimal order size and cycle time. Numerical example shows the applicability of proposed model. Keyword: Inventory, Non-Deterioration, Inflation, Demand, Time-Dependent.
منابع مشابه
EOQ Model with Cash Flow Oriented and Quantity Dependent Under Trade Credits (TECHNICAL NOTE)
Inventory models in which the demand rate dependents on the stock- dependent are based on the common real- life observation that greater product availability tends to stimulate more sales. In this study we develop an inventory model to determine an optimal ordering policy for quantity dependent demand rate and time dependent holding cost items with delay in payments permitted by the supplier un...
متن کاملEOQ Model for Deteriorating Items with Exponential Time Dependent Demand Rate under Inflation When Supplier Credit Linked to Order Quantity
In paper (2004) Chang studied an inventory model under a situation in which the supplier provides the purchaser with a permissible delay of payments if the purchaser orders a large quantity. Tripathi (2011) also studied an inventory model with time dependent demand rate under which the supplier provides the purchaser with a permissible delay in payments. This paper is motivated by Chang (2004) ...
متن کاملA production-inventory model with permissible delay incorporating learning effect in random planning horizon using genetic algorithm
This paper presents a production-inventory model for deteriorating items with stock-dependent demand under inflation in a random planning horizon. The supplier offers the retailer fully permissible delay in payment. It is assumed that the time horizon of the business period is random in nature and follows exponential distribution with a known mean. Here learning effect is also introduced for th...
متن کاملAn Inventory Model for Obsolescence Items with Consideration of Permissible Delay in Payments (Case Study of Obsolete Medicines in Pharmacies)
Background and Objectives: In the real world, the obsolescence items are some items that lose their value over time due to the emergence of new technology. Because of rapid changes in technology, inventory management of such items is considered in recent years. Moreover, suppliers try to encourage the retailers for purchasing an item before it is outmoded with some policies suc...
متن کاملOptimal Ordering Policy with Stock-Dependent Demand Rate under Permissible Delay in Payments
We develop an inventory model to determine optimal ordering policy under permissible delay in payment by considering demand rate to be stock dependent. Mathematical models are derived under two different cases: credit period being greater than or equal to cycle time for settling the account, and credit period being less than or equal to cycle time for settling the account. The results are illus...
متن کاملInventory Model for Deteriorating Items with Stock Dependent Demand under the Effect of Inflation and Trade Credit Period
In this study a deterministic inventory model for deteriorating items with stock dependent demand is developed. In this model the shortages are allowed and partially backlogged and the effect of inflation rate and delay in payments are discussed. This paper establishes an inventory model for the deteriorating items and stock dependent demand rate under inflation when the supplier offers a permi...
متن کامل