A EPQ inventory model with Stochastic Demand, finite production rate of Deteriorating items, Shortages And two-level of credit financing

-An inventory model for deteriorating items and shortages with finite production rate and stochastic demand rate is developed when the supplier offers delay period to the retailer for due payment against purchases and the retailer in turn extends the trade credit offer to its customers. This policy of passing on of the credit period is well known as two-level of credit financing. Items in the system follow stochastic demand behavior that are produced with finite production rate and subjected to constant rate of deterioration. The model is developed with an objective to minimize total expected cost of retailer as it is assumed to be a dominant player in the supply chain. A special case is made by taking time dependent deterioration. A numerical example is provided using LINGO software. Sensitivity analysis of various parameters is carried out to gain meaningful managerial insights.