A Deterministic Inventory Model for Deteriorating Items with Price Dependent Demand and Time Varying Holding Cost under Trade Credit

99 Abstract— In this proposed research, we developed a deterministic inventory model for price dependent demand with time varying holding cost and trade credit under deteriorating environment, supplier offers a credit limit to the customer during whom there is no interest charged, but upon the expiry of the prescribed time limit, the supplier will charge some interest. However, the customer has the reserve capital to make the payments at the beginning, but decides to take the benefit of the credit limit. This study has two main purposes, first the mathematical model of an inventory system are establish under the above conditions. Second this study demonstrate that the optimal solution not only exists but also feasible. Computational analysis illustrates the solution procedure and the impact of the related parameter on decision and profits.