In this study, an EOQ (Economic Order Quantity) inventory mathematical model is constructed for a deteriorating item having time dependent demand when delay in payment is permissible. The deterioration rate is assumed to be a constant and the time varying demand rate is taken to be an exponential declining function of time. Mathematical models are also derived under two different circumstances,...

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...

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...

The purpose of this study is to investigate the impact of trade credit in the inventory system. It explores an inventory system with noninstantaneous replenishment under conditions of permissible delay in payments. In practice, the supplier allows a certain fixed credit period to settle the account for stimulating retailer’s demand. Besides, the supplier can offer cash discount to encourage ret...

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In today’s business transactions, it is frequently observed that a customer is allowed some grace period (permissible delay in payment) before settling the account with the supplier or producer. This policy is advantageous both for the supplier and customer since supplier attracts more customers and customer does not have to pay any interest during this fixed period either. In this paper, the r...