Economic order Quantity (EOQ) for Deteriorating Items with Non-instantaneous Receipt under Trade Credits
نویسنده
چکیده
This paper presents an inventory model with non-instantaneous receipt under the condition of permissible delay in payments. Certain items like volatiles deteriorate during production process. In this paper, we consider deterioration into two phases i.e. phase 1 and phase 2. The purpose of this paper is to determine the optimal replenishment policies under conditions of non-instantaneous receipt and permissible delay in payments. The replenishment rate is assumed to be greater than demand rate. Second order approximation have been used for in exponential terms for finding closed form solution of optimal order quantity, order cycle and order receipt period, so that the total profit per unit time is maximized. Some results have also been obtained. Numerical examples are presented to validate the proposed model. The sensitivity analysis of the solution with the variation of the parameters associated with the model is also discussed.
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