Optimal strategy on inventory model under permissible delay in payments and return policy for deteriorating items with shortages

R. Uthayakumar; A. Ruba Priyadharshini

doi:10.26637/mjm1201/006

Abstract

In this model, the manufacturer offers a trade credit policy to the retailer. Demand depends upon selling price and time for non-instantaneous deterioration items. The retailer offers the customer a returns policy. Customers can return the product to the retailer if the product is unsatisfactory for the customer. The retailer does not ultimately return the amount to its customer for the returned product. The manufacturer offers the retailer a trade credit policy. The retailer resale the returned products at the same selling price. A partially backlogged shortage is permitted and its rate is thought to depend on how long it takes for the following lot to arrive after a lot has been replenished. The main objective is to increase the retailers' overall profit by determining the optimal order quantity, optimal selling price, and optimal replenishment cycle. An EOQ is framed for analyzing the sample, which can obtain the optimal solution.

Keywords:

Non-instantaneous deteriorating items, Permissible delay in payments, resalable returns, Partial backlogging

Mathematics Subject Classification:

90B05

Authors Imprint References Funding Related Articles Downloads

R. Uthayakumar Department of Mathematics, Gandhigram Rural Institute-Deemed to be Institute, Dindigul, India.
A. Ruba Priyadharshini Research Scholar, Department of Mathematics, Gandhigram Rural Institute-Deemed to be Institute, Dindigul, India. https://orcid.org/0000-0003-2323-1701

Pages: 71-84
Date Published: 01-01-2024
Vol. 12 No. 01 (2024): Malaya Journal of Matematik (MJM)

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