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Retailer's ordering policy for deteriorating items with inflation-induced demand under trade credit policy

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  • Chandra K. Jaggi
  • Aditi Khanna

Abstract

The main objective of this paper is to model the retailer's cost minimisation retail strategy when he confronts with the supplier trade promotion offer of credit policy of the type 'd/D1 Net D' under inflationary conditions and inflation-induced demand. A simple-to-use algorithm has been used to obtain the optimal order quantity and total cost. Results have been validated with the help of numerical example along with the sensitivity analysis.

Suggested Citation

  • Chandra K. Jaggi & Aditi Khanna, 2009. "Retailer's ordering policy for deteriorating items with inflation-induced demand under trade credit policy," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 6(3), pages 360-379.
    • Handle: RePEc:ids:ijores:v:6:y:2009:i:3:p:360-379
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    Cited by:

    1. Chih-Te Yang & Liang-Yuh Ouyang & Kun-Shan Wu & Hsiu-Feng Yen, 2012. "Optimal ordering policy in response to a temporary sale price when retailer's warehouse capacity is limited," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 6(1), pages 26-49.

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