Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages

In particular business transactions, the supplier usually provides an admissible delay in settlement to its vendor encourage further sales. Additionally, demand for commodity is inversely proportional function of sales price, which non-linear and, some situations, a holding cost rises over time. Moreover, many goods often deteriorate consistently and shall not be sold after their expiration dates. This study analyses model perishable products with maximum life span price-dependent trade credit by assimilating these variations under supposition time-varying cost. Furthermore, diminish rate deterioration, investment preservation technology taken into account beforehand. Based on real-life circumstances, shortages are admitted backlogged partially, exponential rise wait time before new good emerges. The key ambition calculate optimum preservation, cycle using classical optimization algorithm maximize vendor’s net profit. clarify outcomes, numerical illustrations addressed, sensitivity analysis significant parameters eventually implemented.